Social Networks Analysis in Accounting and Finance

Abstract

Social network analysis (SNA) shifts the focus from individuals and organizations in isolation to their environment and the connections around them, making it a useful tool to investigate the underlying mechanisms of corporate decisions. Our literature review identified 56 studies in top journals in accounting and finance that apply elements of SNA. We provide an overview of the most relevant paradigms of network theory and classify the 56 studies into four main paradigms. We also provide an outline of the key concepts and tools of SNA, including an empirical illustration. Finally, we critically discuss major empirical findings, opportunities, and challenges for future research. We believe SNA will continue to offer an interesting avenue to conduct high-impact and cross-disciplinary research in accounting and finance.

Keywords: social network analysis, networks, interlocks, social ties, social capital, literature review

JEL Classification: M4, M40, M41, M42, M49