Abstract

http://ssrn.com/abstract=1589663
 


 



Interlocking Directorates and Firm Performance: Evidence from French Companies


Sana Elouaer Mrizak


Faculté de Droit et des Sciences Economiques et Politiques de Sousse

March 1, 2009


Abstract:     
An interlock between two firms occurs if the firms share one or more directors in their boards of directors. We explore the effect of interlocks on firm performance for a sample of 250 French companies using a large and new panel database. We use two different performance measures (Return On Assets and Tobin's Q).

Based on all findings we conclude that there is a significant association between network position and performance. Based on the way it is linked to other firms in the network, a firm's position in a network has been shown to have effect on the performance of a firm. In other words, we conclude that the firm's performance is a function of the position of a company to others in the whole network. The results suggest that the location of firms in these networks is more important than simply the number of ties.

Keywords: firm performance, interlocks, network position

JEL Classification: C23, J53, G32, G34, Z13

working papers series


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Date posted: April 15, 2010  

Suggested Citation

Elouaer Mrizak, Sana, Interlocking Directorates and Firm Performance: Evidence from French Companies (March 1, 2009). Available at SSRN: http://ssrn.com/abstract=1589663

Contact Information

Sana Elouaer Mrizak (Contact Author)
Faculté de Droit et des Sciences Economiques et Politiques de Sousse ( email )
Cité Erriadh BP 159
4023
Sousse, Sousse 4023
Tunisia
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