Director's Social Capital,Individual Reputation And Enterprise Performance

Since the birth of the board of directors,the relevance between directors and corporate performance has been the core issue of corporate governance research agenda.Its research perspective mainly focuses on two aspects of board system characteristics and board members' individual characteristics.With the increasing complexity of the internal and external environment,resource dependence theory and stakeholder theory was introduced into the research framework of corporate governance,the board of directors of the value is not only reflected in the decision-making,supervision and advice functions,in the complex and changeable market environment,The contribution of the resource providing function to the value of the enterprise can not be ignored.Social capital provides a new perspective,Social capital is initially a sociological concept.It refers to a series of relationship resources formed by individuals in the social environment,which is expressed in the form of information sharing,mutual benefit and so on.Therefore,this paper makes a decision from the angle of the director's social capital to explore its impact on the performance of the enterprise.In March 31,2009,China Securities Regulatory Commission approved the establishment of gem at Shenzhen Stock Exchange.The biggest feature of the gem is low threshold entry,in the inferior position of information and resources.the role of directors' social capital should be more prominent in gem enterprises.Therefore,this paper decided to choose GEM listed companies as a research sample to explore the impact of board members' social capital on the performance of GEM companies.In this paper,the literature review is carried out from two angles of the board of directors and social capital.Next,the principal-agent theory,resource dependence theory,stakeholder theory,social capital theory and reputation mechanism are systematically expounded,lay a theoretical foundation for the study of this article.Scholars' research on social capital is mainly concerned with two aspects,one is the political relationship of the director,Two is the director's experience in other enterprises.Therefore,this paper divides social capital into two dimensions,political social capital and market social capital,to measure the political resources and market resources of the directors respectively.In addition,inspired by the reputation mechanism,the more reputable individuals are able to make use of their power and status in the network,and to get the high quality resources that the enterprise really needs at low cost.Therefore,this paper uses the individual reputation of the director to measure theability of the director to mobilize and obtain resources.Next,According to the built model and the collected experience data,empirically analyze the relationship between board members' social capital and corporate performance,and the moderating effect of reputation.The results of the empirical analysis show that:(1)The directors' political social capital is positively related to the performance of entrepreneurial enterprises,that is,directors' experience in government departments and the status of people's representatives and CPPCC members in central or local governments are beneficial to improve the performance of entrepreneurial enterprises(2)Directors' market social capital is positively related to the performance of entrepreneurial enterprises,that is,the wider social connections between directors and other organizations in the market,the more likely it is to improve the performance of entrepreneurial enterprises.(3)The positive impact of market social capital on entrepreneurial performance is greater than that of political social capital.Compared with political relations,resources in market linkages are more effective for entrepreneurial enterprises.(4)The reputation of the directors is positively related to the performance of the gem,and also strengthens the degree of the acquisition and utilization of the resources in the network,has a positive regulating effect on the relationship between social capital and performance.