ESE - Escuela de Negocios

Título: Firm Performance and Structural Embeddedness in Controversial Corporate Decisions: Do Social Norms Really Strengthen Corporate Governance? Autor(es): Erica Salvaj Fabrizio Ferrero Fecha Publicación: 06 Diciembre 2006 Código ESE Tipo de Publicación: Papers Académicos y Documentos de Trabajo

Reseña:

Reseña: We explore the impact of corporate elite network structure on the adoption of change-in-control agreements. Building on the embeddedness literature and using data from a sample of major U.S. corporations over a five-year period, we found that in poorly performing firms, CEOs embedded in denser social network are less likely to obtain charge-in-control provision, while in better performing firms, embeddedness successfully dampens opportunistic behaivor. We conclude that the effect of structural embeddedness on corporate malfeasance is contingent on firm performance.