Theories Related to the Relationship Between Board Diversity, Earnings Management, and Firm Performance

2021 ◽  
pp. 1-26
Author(s):  
Ahmad Alqatan ◽  
Imad Chbib ◽  
Khaled Hussainey
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Firm Performance ◽  
Earnings Management ◽  
Resource Dependence ◽  
Social Capital Theory ◽  
Board Diversity ◽  
Capital Theory ◽  
The Relationship ◽  
Research Studies

Previous research studies have used multiple theories, such as resource dependence, human capital, social capital, busyness, signalling, behavioural, and agency theories in order to investigate the association between board diversity and earnings management and the association between board diversity and firm performance. This chapter surveys 75 research studies and used 37 theories. Most of the studies focused on agency and resource dependent theories. Also, this study used social capital theory as a contribution of the chapter, which was rarely used and which examined the relationship between board diversity and earnings management in addition to firm performance.

scholarly journals tugas review artikel

2019 ◽  
Author(s):  
Arlika Anindya Putri
Keyword(s):  
Social Capital ◽  
Social Networks ◽  
Social Media ◽  
Social Network ◽  
Firm Performance ◽  
Positive Impact ◽  
Social Capital Theory ◽  
Capital Theory ◽  
Mediating Role ◽  
The Social

Purpose – The purpose of this study is to develop a structural equation model to explain the complexrelationship between social network and firm performance by introducing the mediating role of trust, sellingcapability and pricing capability.Design/methodology/approach – The research model with hypothesis development was derived basedon the literature. To provide empirical evidence, this study carried out a survey in which the data wereequated with a list of questionnaires with a random survey of 380 small and medium enterprises (SMEs) inthe Indonesian context.Findings – This study indicates that the use of social media in management process will not affect theincreasing firm performance, unless the firms build trust upon social networks. The social network with trustallows the firms to gain a pricing capability and a selling capability, which brings a positive impact on firmperformance. The results also show that the selling and the pricing capabilities become essential following theutilizing the social media, which concerns on trust building.Research limitations/implications – This study focused on the small-to-medium context, which hasconventionally provided an exemplary site for the development of social capital theory but raises issues ofgeneralizability across different contexts.Practical implications – To the managers, it is advisable to encourage their employees to consciouslyexploit the selling capability by enhancing the business networks via social media to achieve the firmperformance.Originality/value – This paper contributes to the social capital theory by explaining the mediating role oftrust in the complex relationship between social network and firm performance. This study provides evidencethat trust plays a pivotal role in social networks, which enable the observed firms to achieve the performance.

Social Capital and Micro-Entrepreneurship

2020 ◽  
pp. 133-156
Keyword(s):  
Social Capital ◽  
Economic Development ◽  
Competitive Advantage ◽  
Social Capital Theory ◽  
Capital Theory ◽  
Standards Of Living ◽  
The Status ◽  
The Relationship ◽  
Micro Enterprises

Social capital has been proven in many studies to correlate with economic development and increment in standards of living in a collective manner. This chapter presents a brief description regarding social capital and micro-enterprises that narrowly focuses on the relationship between social capital theory and entrepreneurship. The chapter further portrays the varied dimensions of social capital followed by the status of social capital from the Malaysian perspective. Finally, the chapter ends with a discussion on the effect of social capital on competitive advantage, which has been presumed to be the most important aspect for micro-enterprises.

Exploring the family effect on firm performance

2015 ◽  
Vol 21 (6) ◽  
pp. 898-917 ◽  
Author(s):  
Yosra Mani ◽  
Lassaad Lakhal
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Family Firms ◽  
Family Firm ◽  
Social Capital Theory ◽  
Three Dimensions ◽  
Capital Theory ◽  
Cognitive Dimension ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to investigate how internal social capital – as a part of the familiness resources– affects family firm performance. The social capital theory states that internal social capital within family businesses is composed of three dimensions: the structural dimension, the relational dimension, and the cognitive dimension. The aim of the paper is to study the relationship between each dimension of internal social capital and family firm performance. Design/methodology/approach – The paper employs an empirical investigation which is based on a sample of 114 Tunisian family firms. Findings – Results demonstrate that the structural and relational dimensions are positively associated with financial and non-financial family firm’s performance. However, the cognitive dimension has a significant positive effect on financial performance but not on non-financial family firm performance. Originality/value – The proposed model aims to test the direct effect of internal social capital dimensions on financial and non-financial family firm’s performance. Besides, there is a lack of empirical evidence aiming at understanding the impact of structural, cognitive and relational social capital on the performance of family firms.

Linking Bonding and Bridging Ownership Social Capital in Private Firms

2015 ◽  
Vol 28 (3) ◽  
pp. 260-277 ◽  
Author(s):  
Lorraine M. Uhlaner ◽  
Ilse A. Matser ◽  
Marta M. Berent-Braun ◽  
Roberto H. Flören
Keyword(s):  
Social Capital ◽  
Family Firm ◽  
Shared Vision ◽  
Social Capital Theory ◽  
Capital Theory ◽  
Positive Effects ◽  
Moderator Effects ◽  
Bonding And Bridging ◽  
The Relationship

This study examines the relationship between bonding and bridging ownership social capital (OSC) for a random sample of 679 privately held small and medium-sized firms. Results confirm the positive effects of bonding OSC (quality of relationships and shared vision) on bridging OSC (network mobilization) as well as two- and three-way moderator effects of family firm identity and ownership–management overlap. Moderator effects are more robust, however, for the shared vision indicator of bonding OSC. Implications for social capital theory, social and organizational identity theory, and family firm research and practice are discussed.

scholarly journals The Role of Intergenerational Networks in Students’ School Performance in Two Differentiated Educational Systems: A Comparison of Between- and Within-Individual Estimates

2019 ◽  
Vol 93 (1) ◽  
pp. 40-64
Author(s):  
Sara Geven ◽  
Herman G. van de Werfhorst
Keyword(s):  
Social Capital ◽  
School Performance ◽  
Positive Relationship ◽  
Social Capital Theory ◽  
Educational Systems ◽  
Capital Theory ◽  
Student Differences ◽  
The Relationship ◽  
Over Time

In this article, we study the relationship between intergenerational networks in classrooms (i.e., relationships among parents in classrooms, and between parents and their children’s classmates) and students’ grades. Using panel data on complete classroom networks of approximately 3,000 adolescents and their parents in approximately 200 classes in both Germany and the Netherlands, we compare estimates based on between-student differences in intergenerational networks (i.e., between-individual estimates) to estimates based on changes students experience in their intergenerational networks over time (i.e., within-individual estimates). We also examine how the relationship between intergenerational networks and grades is contingent on students’ location in the educational system (i.e., their ability track). When considering between-individual estimates, we find some support for a positive relationship between intergenerational networks and grades. However, we find no robust support when considering within-individual estimates. The findings suggest that between-individual estimates, which most previous research has relied on, may be confounded by unobserved differences across individuals. We find little support for variations in these estimates across ability tracks. We discuss the implications for Coleman’s social capital theory on intergenerational closure.

scholarly journals Modelling the Relationship between Linked-In Usage and Social Capital Formation

2021 ◽  
Vol 10 (1) ◽  
pp. 624
Author(s):  
Najmul Hoda ◽  
S. L. Gupta ◽  
Mobin Ahmad ◽  
Utkarsh Gupta
Keyword(s):  
Social Capital ◽  
Social Networking Sites ◽  
Social Capital Theory ◽  
Capital Theory ◽  
Bonding Social Capital ◽  
Behavioral Profile ◽  
Social Media Platforms ◽  
New Applications ◽  
The Relationship

The main purpose of this study is to test if the use of social networking sites (SNSs) results in any perceived social capital for the users. Putnam’s classification of social capital into bridging and bonding social capital is used for the study. The first objective of the study was to study the demographic and behavioral profile of LinkedIn users. The second objective was to test the model describing the relationship between the constructs intensity of LinkedIn usage and the two types of social capital. A structured questionnaire that included standard scales for measuring the constructs was shared on various social media platforms. The model was analyzed using PLS-SEM in R software. The results confirmed all the three hypothesized relationships and also validated the overall model. This study contributes to the validation as well as extension of social capital theory in SNS. Further, the results throw light on the new applications of SNS by the industry.

scholarly journals Female entrepreneurship and social capital: Exploring the relationship between social connection and women-owned social media-based businesses in Bangladesh

Plaridel ◽  
2021 ◽  
Vol 18 (2) ◽  
Author(s):  
Naziat Choudhury
Keyword(s):  
Social Capital ◽  
Social Media ◽  
Women Entrepreneurs ◽  
Institutional Support ◽  
Social Capital Theory ◽  
Social Connections ◽  
Structured Interviews ◽  
Female Entrepreneurship ◽  
Capital Theory ◽  
The Relationship

Businesswomen in Bangladesh are using social media to do business from their homes, in support of their financial development. Social capital theory is applied to investigate the role that family and other close and external networks play in conducting business through social media. Semi-structured interviews were conducted with 31 businesswomen to understand why they chose social media for their business, and to identify the type of support they got from their social connections and the hurdles they encountered. Content analysis examined their Facebook and Instagram pages for two weeks to understand the support that their external networks provided. This study finds that family and other close networks encouraged women entrepreneurs with loans, free labour, and product promotions that contributed in building and sustaining the businesses, while external networks helped with more formal or institutional support. Meanwhile, customers provided intangible support that encouraged the businesswomen to start, survive, and succeed.

scholarly journals Community Social Capital and Firm Performance

2021 ◽  
Vol 4 (1) ◽  
pp. 219-229
Author(s):  
Fitriana Rahmawati ◽  
Ainur Rofiq ◽  
Risna Wijayanti
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Business Performance ◽  
Social Capital Theory ◽  
Small Scale ◽  
Trust Network ◽  
Capital Theory ◽  
Internal Resources ◽  
The Social ◽  
Business Entities

This study aims to contribute to the social capital theory. This goal is achieved through determine the relationship between social capital and firm performance. It is carried out because SME's have limited access to resources. SME's need other alternatives to sustain their business. Small entrepreneurs feel the need to focus more on their internal resources. The development of the theory of social capital is important. In contrast to most previous studies, this research uses qualitative study research methods. To obtain the data, in-depth interviews with key informants were conducted. The finding shows that social capital consists of reciprocity, trust, network, and norms. This study also provides evidence that social capital plays a pivotal role in SME performance. Small entrepreneurs get various benefits after joining the group. In addition, social capital can help empower ordinary housewives to become small-scale entrepreneurs. In conclusion, strong social capital can improve business performance, thereby encouraging the economy to grow. The results of this research can be used as consideration for business entities to strengthen their business performance. More than that, this research is also used as a guide in determining strategic SME development policies for government. This research also contributes to the development of strategic management theory.

scholarly journals Resignation of officials as independent directors and firm performance

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Ting Ren ◽  
Youzhi Xiao ◽  
Xinguo Yu ◽  
Hongyan Yang ◽  
Jianmei Ge
Keyword(s):  
Firm Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Social Capital Theory ◽  
Political Connections ◽  
Independent Directors ◽  
Chinese Government ◽  
Political Connection ◽  
Capital Theory ◽  
Negative Effect

Abstract In 2013, the Chinese government implemented Rule No. 18, which suspended the directorships of incumbent government officials and precluded those who retired within the past three years from serving as independent directors for listed firms. The surprise implementation of Rule No. 18 triggered a wave of resignations among official independent directors (OIDs). The event provided a unique opportunity to examine the impacts of the political connections of board members on firm performance. We applied a difference-in-difference technique to empirically investigate the effect of OID resignations on firm performance from the perspectives of resource dependence theory and social capital theory. The results indicate that the resignation of OIDs had a significantly negative effect on firm performance, as measured by Tobin’s Q and firm leverage. This also confirmed the importance of independent directors’ political connection on firm performance, as discovered in prior research. However, this influence varied across OIDs’ heterogeneity, external environment and firm ownership. The results indicate that political connections may not be necessary channels for firms to achieve success.

scholarly journals Achieving innovative firm performance through human capital and the effect of social capital

2020 ◽  
Vol 15 (2) ◽  
pp. 326-344
Author(s):  
Sarminah Samad
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Firm Performance ◽  
The Past ◽  
Research Fields ◽  
Innovative Firm ◽  
Overall Performance ◽  
And Performance ◽  
The Relationship

AbstractFor the past decade, human capital has been recognized as one of the crucial assets of any firm’s overall performance. Previous studies widely advocated a linear link between human capital and innovative firm performance, arguing that there are a variety of factors to examine if the relationship between human capital and innovative firm performance is to be properly understood. The focus of this study was to examine the effect of social capital on the relationship between human capital and innovative firm performance. Specifically, it examined the relationship between human capital and social capital and between human capital and innovative firm performance. It also examined the relationship between social capital and innovative firm performance. A total of 294 questionnaires were obtained from managerial staff in automotive companies in Malaysia and the data was analysed using the Partial Least Squares (PLS) test. The results indicated a direct effect between human capital and innovative performance. It was found that human capital is significantly related to social capital and that there is a significant relationship between social capital and innovative firm performance, indicating the ability of social capital to improve innovative firm performance. Finally, it revealed that innovative firm performance could be achieved by human capital through the role of valuable social capital and that good innovative firm performance leads to more prudent and sustainable organisations. The results provide pertinent implications for academia, policymakers and market players while also contributing to the research fields of strategic management, human capital, social capital and performance.

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