Boardroom Centrality and Systematic Risk of Firms

• 成果类型: Article; Early Access
• 署名作者: Chen, Yunsen; Lu, Yao; Zheng, Dengjin
• 署名单位: Central University of Finance & Economics; Tsinghua University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2020.01240
• 发表日期: 2025
• 关键词: social network; systematic risk exposure; Information transfer

摘要

We find that boardroom centrality increases the market beta of firms. The higher stock returns of firms with high boardroom centrality diminish and turn statistically insignificant after controlling for market betas. The effect can be attributed to a comovement in accounting fundamentals and financial policies. Overall, these findings highlight the fact that the social networks of corporate leaders (i.e., directors of corporate boards) can have a substantial effect on firms' systematic risk exposure.