Director Network, Governance of Independent Directors and Efficiency of Enterprise Capital Allocation

Based on the social network analysis theory and employing multivariate linear regression, this study empirically examines the effect of network location of independent directors in China’s listed companies on the efficiency of capital allocation of the enterprises, using a research sample of China’s A-share companies listed in Shanghai and Shenzhen Stock Exchanges over the period of 2013–2016. The research shows that the higher the network centrality of independent directors, the more it can improve the inefficient investment of enterprises and enhance the efficiency of capital allocation. Specifically, as the investment inefficiency is divided into under-investment and over-investment, the findings show that the more central the independent directors are in the director network, the better, which not only can suppress the over-investment of enterprises, but also can effectively alleviate the under-investment of enterprises. Based on the further study of nature of the enterprises’ property rights, in comparison with that of state-owned enterprises, the network centrality of independent directors of private-owned enterprises plays a more significant role in improving the efficiency of corporate investment.

The Effect of Interlocking Director Network on Corporate Risk Taking: Lessons from China

Using a dataset of Chinese listed companies, this article quantizes the centrality of interlocking director network based on the social network analysis and examines the effect of interlocking director network on corporate risk taking. The empirical results find that when interlocking director networks have a high centrality, network members are more likely to imitate risk-taking behaviors. Marketization and investment opportunities have positive moderating effects, indicating boundary conditions in social network theory.

The South African Banking Director Network: An Investigation Into Interlocking Directorships Using Social Network Analysis (SNA)

The theory of complex systems has gained significant ground in recent years, and with it, complex network theory has become an essential approach to complex systems. This study follows international trends in examining the interlocking South African bank director network using social network analysis (SNA), which is shown to be a highly connected social network that has ties to many South African industries, including healthcare, mining, and education. The most highly connected directors and companies are identified, along with those that are most central to the network, and those that serve important bridging functions in facilitating network coherence. As this study is exploratory, numerous suggestions are also made for further research.