Home > Research > Publications & Outputs > The Small World of Corporate Boards
View graph of relations

The Small World of Corporate Boards

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published

Standard

The Small World of Corporate Boards. / Conyon, Martin; Muldoon, M.
In: Journal of Business Finance and Accounting, Vol. 33, No. 9-10, 11.2006, p. 1321-1343.

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Harvard

Conyon, M & Muldoon, M 2006, 'The Small World of Corporate Boards', Journal of Business Finance and Accounting, vol. 33, no. 9-10, pp. 1321-1343. https://doi.org/10.1111/j.1468-5957.2006.00634.x

APA

Conyon, M., & Muldoon, M. (2006). The Small World of Corporate Boards. Journal of Business Finance and Accounting, 33(9-10), 1321-1343. https://doi.org/10.1111/j.1468-5957.2006.00634.x

Vancouver

Conyon M, Muldoon M. The Small World of Corporate Boards. Journal of Business Finance and Accounting. 2006 Nov;33(9-10):1321-1343. doi: 10.1111/j.1468-5957.2006.00634.x

Author

Conyon, Martin ; Muldoon, M. / The Small World of Corporate Boards. In: Journal of Business Finance and Accounting. 2006 ; Vol. 33, No. 9-10. pp. 1321-1343.

Bibtex

@article{00758a5ee05d4d25ab61bfce98a4349b,
title = "The Small World of Corporate Boards",
abstract = "We demonstrate the importance of graph theory for understanding boards of directors. Specifically, we focus on the {\textquoteleft}small world{\textquoteright} phenomenon. Our empirical results show that a random graph model is remarkably good at explaining board structure and connectedness in the United States, the United Kingdom and Germany. Although there are small-world traits such as {\textquoteleft}clustering{\textquoteright} and {\textquoteleft}short-paths{\textquoteright} in the corporate world, they are no more pronounced than would be expected by chance in a statistically similar, but randomly assembled corporate universe. In short, boards of directors, especially in the United States, are no more {\textquoteleft}clubby{\textquoteright} than expected. Finally, our results show the existence of positive degree correlation: directors who sit on many boards do so in the company of other directors who sit on many boards. Board members whose services are in high demand, serve on boards with similar directors.",
keywords = "boards of directors , small worlds , corporate governance",
author = "Martin Conyon and M Muldoon",
year = "2006",
month = nov,
doi = "10.1111/j.1468-5957.2006.00634.x",
language = "English",
volume = "33",
pages = "1321--1343",
journal = "Journal of Business Finance and Accounting",
issn = "0306-686X",
publisher = "Wiley-Blackwell",
number = "9-10",

}

RIS

TY - JOUR

T1 - The Small World of Corporate Boards

AU - Conyon, Martin

AU - Muldoon, M

PY - 2006/11

Y1 - 2006/11

N2 - We demonstrate the importance of graph theory for understanding boards of directors. Specifically, we focus on the ‘small world’ phenomenon. Our empirical results show that a random graph model is remarkably good at explaining board structure and connectedness in the United States, the United Kingdom and Germany. Although there are small-world traits such as ‘clustering’ and ‘short-paths’ in the corporate world, they are no more pronounced than would be expected by chance in a statistically similar, but randomly assembled corporate universe. In short, boards of directors, especially in the United States, are no more ‘clubby’ than expected. Finally, our results show the existence of positive degree correlation: directors who sit on many boards do so in the company of other directors who sit on many boards. Board members whose services are in high demand, serve on boards with similar directors.

AB - We demonstrate the importance of graph theory for understanding boards of directors. Specifically, we focus on the ‘small world’ phenomenon. Our empirical results show that a random graph model is remarkably good at explaining board structure and connectedness in the United States, the United Kingdom and Germany. Although there are small-world traits such as ‘clustering’ and ‘short-paths’ in the corporate world, they are no more pronounced than would be expected by chance in a statistically similar, but randomly assembled corporate universe. In short, boards of directors, especially in the United States, are no more ‘clubby’ than expected. Finally, our results show the existence of positive degree correlation: directors who sit on many boards do so in the company of other directors who sit on many boards. Board members whose services are in high demand, serve on boards with similar directors.

KW - boards of directors

KW - small worlds

KW - corporate governance

U2 - 10.1111/j.1468-5957.2006.00634.x

DO - 10.1111/j.1468-5957.2006.00634.x

M3 - Journal article

VL - 33

SP - 1321

EP - 1343

JO - Journal of Business Finance and Accounting

JF - Journal of Business Finance and Accounting

SN - 0306-686X

IS - 9-10

ER -