Matthias Raddant, CSH researcher and research fellow at Danube University Krems, will present his latest projects on February 18 at 3 pm via Zoom.
Please send us an email, if you would like to join the online talk.
Topic: “Corporate boards, interorganizational ties, female board members and profitability: the case of Japan”
We analyze the ties between 4,000 Japanese corporations in the time period from 2004 until 2013. We combine data about the board composition with ownership relationships and indicators of corporate profitability. Connectivity in the board network (corporate board interlocks) and ownership network (shareholdings) does have an influence on profitability. Firms that are linked to peers with above average profitability are more profitable than firms in other relationships. Hence, network effects partly explain why board interlocks and ownership ties are not always beneficial.
Network ties also play a role in the appointment of female board members. Corporate boards and the corresponding members show homophily with respect to gender in their networks. The observed homophily leads to interdependencies in the appointments of new board members. New appointments of female board members are more likely at firms with ties to other boards with female board members.