File Download
There are no files associated with this item.
Links for fulltext
(May Require Subscription)
- Publisher Website: 10.1016/j.jbankfin.2020.105991
- Scopus: eid_2-s2.0-85095684937
- WOS: WOS:000596849900008
- Find via
Supplementary
- Citations:
- Appears in Collections:
Article: What's in a Name? The Valuation Effect of Directors' Sharing of Surnames
Title | What's in a Name? The Valuation Effect of Directors' Sharing of Surnames |
---|---|
Authors | |
Keywords | Surname Board diversity Social tie Firm value Board voting |
Issue Date | 2021 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jbf |
Citation | Journal of Banking & Finance, 2021, v. 122, p. article no. 105991 How to Cite? |
Abstract | Using surname sharing as a novel measure of social ties, we examine the effect of directors’ surname sharing on firm value. We find that boards with greater surname homogeneity are associated with lower firm value. This finding is not driven by familial ties. The negative effect of surname sharing on firm value is more pronounced when directors share rare surnames and when firms operate in regions with stronger clan systems, but is attenuated by stronger corporate governance mechanisms. The market reacts positively to plausibly exogenous director resignations that reduce director surname sharing, and negatively to board appointments that increase director surname sharing. Director surname sharing lowers firm value by reducing director dissension, granting excess executive compensation, and increasing related-party transactions. Overall, our results suggest that directors’ surname sharing, an easy-to-trace but previously neglected social tie, can have significant economic consequences. © 2020 Elsevier B.V. |
Persistent Identifier | http://hdl.handle.net/10722/290831 |
ISSN | 2023 Impact Factor: 3.6 2023 SCImago Journal Rankings: 1.663 |
ISI Accession Number ID |
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Tan, Y | - |
dc.contributor.author | Xiao, J | - |
dc.contributor.author | Zeng, CC | - |
dc.contributor.author | Zou, H | - |
dc.date.accessioned | 2020-11-02T05:47:44Z | - |
dc.date.available | 2020-11-02T05:47:44Z | - |
dc.date.issued | 2021 | - |
dc.identifier.citation | Journal of Banking & Finance, 2021, v. 122, p. article no. 105991 | - |
dc.identifier.issn | 0378-4266 | - |
dc.identifier.uri | http://hdl.handle.net/10722/290831 | - |
dc.description.abstract | Using surname sharing as a novel measure of social ties, we examine the effect of directors’ surname sharing on firm value. We find that boards with greater surname homogeneity are associated with lower firm value. This finding is not driven by familial ties. The negative effect of surname sharing on firm value is more pronounced when directors share rare surnames and when firms operate in regions with stronger clan systems, but is attenuated by stronger corporate governance mechanisms. The market reacts positively to plausibly exogenous director resignations that reduce director surname sharing, and negatively to board appointments that increase director surname sharing. Director surname sharing lowers firm value by reducing director dissension, granting excess executive compensation, and increasing related-party transactions. Overall, our results suggest that directors’ surname sharing, an easy-to-trace but previously neglected social tie, can have significant economic consequences. © 2020 Elsevier B.V. | - |
dc.language | eng | - |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jbf | - |
dc.relation.ispartof | Journal of Banking & Finance | - |
dc.subject | Surname | - |
dc.subject | Board diversity | - |
dc.subject | Social tie | - |
dc.subject | Firm value | - |
dc.subject | Board voting | - |
dc.title | What's in a Name? The Valuation Effect of Directors' Sharing of Surnames | - |
dc.type | Article | - |
dc.identifier.email | Zou, H: hongzou@hku.hk | - |
dc.identifier.authority | Zou, H=rp01800 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jbankfin.2020.105991 | - |
dc.identifier.scopus | eid_2-s2.0-85095684937 | - |
dc.identifier.hkuros | 318353 | - |
dc.identifier.volume | 122 | - |
dc.identifier.spage | article no. 105991 | - |
dc.identifier.epage | article no. 105991 | - |
dc.identifier.isi | WOS:000596849900008 | - |
dc.publisher.place | Netherlands | - |
dc.identifier.issnl | 0378-4266 | - |