You've Got a Friend: Examining Board Interlock Formation After Financial Restatements

• 成果类型: Article
• 署名作者: Withers, Michael C.; Howard, Michael D.; Tihanyi, Laszlo
• 署名单位: Texas A&M University System; Texas A&M University College Station; Mays Business School
• 刊物名称: ORGANIZATION SCIENCE
• ISSN/ISSBN: 1047-7039
• DOI: 10.1287/orsc.2019.1319
• 发表日期: 2020
• 页码: 742-769
• 关键词: CORPORATE GOVERNANCE; social networks; Board interlocks; financial restatements; stigma

摘要

We investigate the impact of financial restatements as critical events that influence board interlock formation among Fortune 500 firms during the 2009-2013 period. Our empirical study is based on a longitudinal analysis of tie formation while accounting for dynamic changes in the behavior and characteristics of network nodes using stochastic actor-oriented models. We find that firms facing financial restatements experience disruption in network ties. However, social status helps mitigate these effects, and restating firms build new ties through socially embedded processes, such as reciprocity and transitivity. Our work contributes to the understanding of how interorganizational relationships are altered as a result of financial restatement events.