Research On The Influence Of Directors’ Social Network On Listed Companies’ Business Performance

With the flourishing and standardization of China’s market economy,China’s modern enterprise system is constantly developing and improving.These include the growing sophistication of the board system.In the development of the board of directors system,the emergence of interlocking directors has become a bright spot.It is a widespread social phenomenon that interlocking directors hold concurrent positions in many companies in China.The director social network based on interlocking directors has gradually become an important way to strengthen the connection between enterprises and form network connections.The commercial value contained therein has a direct or indirect impact on the corporate governance level and corporate performance.Research on its specific effect is helpful to help enterprises transform and upgrade and improve their core competitiveness.Therefore,after systematically sorting out previous studies,this paper selected social network theory,structural hole theory,resource dependence theory,social capital theory and leadership theory as theoretical support to clarify the perspective of social network research and guide the subsequent empirical research.The empirical research part focuses on the impact mechanism of the basic characteristics of directors’ social network on the operating performance of listed companies.In this paper,all a-share listed companies from 2010 to 2019 were selected as empirical research samples,and gephi0.9.2 statistical software was used to construct visualized directors’ social network and clarify the change trend and characteristics.Considering the heteroscedasticity and autocorrelation of samples,the regression model was adjusted and modified to conduct correlation analysis and main regression analysis.And,on this basis,further sample regression analysis.Finally,the robustness test is carried out by replacing explained variables to enhance the explanatory ability of evaluation methods and indicators,so as to seek common laws and conclusions.Through empirical research,it is concluded that network centrality,network size,network density and structural hole of directors’ social network have a significant positive impact on the operating performance of listed companies,which is consistent with the expected hypothesis.Further research shows that director social network is not significant for state-owned enterprises and western enterprises.The reasons are analyzed and summarized.Finally,based on the above research results,this paper puts forward corresponding suggestions from the perspectives of the government,enterprises and chain directors,so as to give full play to the advantages of directors’social network,improve corporate governance effect and improve business performance.The main contributions of this paper are:(1)innovation of research perspective.Focusing on the impact of directors’ social network on business performance enriches the research on the governance effect of social network.(2)Innovation of empirical research methods.Most of the previous studies on the impact of directors’ social network focus on the role of a single indicator,but this paper evaluates the impact of directors’ social network from multiple indicators such as network centrality,network size,network density and structure hole,which enriches the granularity of social network research.