Directionality matters: Board interlocks and firm internationalization

ABSTRACT This study examines (1) whether network ties help explain variation in tax avoidance, and (2) how the relation between network ties and tax avoidance varies depending on the nature and context of those ties. We posit that information on a range of tax-avoidance strategies is shared among firms through their social network connections. Using board interlocks to proxy for these connections, we find that firms with greater board ties to low-tax firms have lower cash ETRs themselves. Ties to low-tax firms are more influential when the focal firm and its network partner are operationally and strategically similar, as are ties created by executive directors. Board ties to low-tax firms are also more influential when the focal firm and its network partner engage the same local auditor. Overall, our results suggest that the influence of firms' network ties on their tax-avoidance behavior depends on the character of those ties.

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Classeek Spirits of the World: E-Business Internationalization

The International Journal of Entrepreneurship and Innovation ◽

10.5367/ijei.2011.0030 ◽

2011 ◽

Vol 12 (2) ◽

pp. 137-144 ◽

Cited By ~ 1

Author(s):

Harry Matlay ◽

Paul Westhead ◽

Mike Wright

Keyword(s):

Small Firm ◽

Secondary Level ◽

Family Businesses ◽

Firm Internationalization ◽

The World ◽

Reputational Capital

This case study examines the motivations and barriers to small firm internationalization. The entrepreneur's human and reputational capital, experience and knowledge are leveraged to address barriers. An e-business platform strategy is illustrated. At a secondary level, the case also demonstrates the challenges inherent in revitalizing family businesses over generations of ownership.

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Do Interlocks Lead to the Convergence of Interfirm Innovation Performance? Evidence From China

SAGE Open ◽

10.1177/21582440211007132 ◽

2021 ◽

Vol 11 (2) ◽

pp. 215824402110071

Author(s):

Ying Teng ◽

Eli Gimmon ◽

Wentong Lu

Keyword(s):

Network Effects ◽

Demographic Characteristics ◽

Innovation Performance ◽

Driving Mechanism ◽

Interlocking Directorates ◽

Board Interlocks ◽

Enterprise Innovation ◽

New Perspective ◽

The Relationship ◽

Level Analysis

We examine how interlocking directorates influence innovation performance differentials between firms. Our study offers a new perspective of the effect of interlocking directorate ties upon innovation performance, focusing on network effects on interfirm performance. Using a sample of China’s listed companies for the period 2012–2016, we empirically examined the relationship between board interlocks and interfirm innovation performance differentials. The results demonstrate that the presence of board interlocks reduces interfirm innovation performance differentials and leads to a convergence of innovation performance between the connected companies. Furthermore, cross-level analysis found that the relationship between board interlocks and interfirm innovation performance differentials is moderated by the interfirm industry attributes and demographic characteristics of the board. This study expands the existing research in explaining the driving mechanism of enterprise innovation performance as affected by interlocking directorate ties.

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Corporate boards, interorganizational ties and profitability: the case of Japan

Empirical Economics ◽

10.1007/s00181-021-02062-y ◽

2021 ◽

Author(s):

Matthias Raddant ◽

Hiroshi Takahashi

Keyword(s):

Network Effects ◽

Board Composition ◽

Corporate Boards ◽

Corporate Board ◽

Combine Data ◽

Board Interlocks ◽

Time Period ◽

Interorganizational Ties ◽

Japanese Corporations

AbstractWe analyze the ties between 4000 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. The board network exhibits some clustering, which can partly be explained by ownership relations, and a tendency to form ties to other corporations from the same sector. Connectivity in the board network (corporate board interlocks) and ownership network (shareholdings) does have an influence 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.

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