Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212229 
Year of Publication: 
2012
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 26/2012
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This paper examines through various channels the effects of CEO social network heterogeneity on firm value. We construct four measures of heterogeneity based on demographic attributes, intellectual backgrounds, professional experience, and geographical exposures of individuals in the CEO social network. We find that CEO social network heterogeneity leads to higher Tobin's Q of firms. Greater CEO social network heterogeneity also leads to: (i) more innovation, (ii) more foreign sales growth, (iii) higher investment sensitivity to Tobin's Q, and (iv) better M&A performance. Overall, our results indicate that CEO social network heterogeneity is an aspect of CEO social capital and soft skills that deserves the attention of shareholders.
Subjects: 
CEO
social networks
corporate finance policy decisions
firm value
JEL: 
G32
G30
D71
Z10
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-815-0
Document Type: 
Working Paper

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