+ Site Statistics
+ Search Articles
+ PDF Full Text Service
How our service works
Request PDF Full Text
+ Follow Us
Follow on Facebook
Follow on Twitter
Follow on LinkedIn
+ Subscribe to Site Feeds
Most Shared
PDF Full Text
+ Translate
+ Recently Requested

Identifying influential directors in the United States corporate governance network

Identifying influential directors in the United States corporate governance network

Physical Review. E, Statistical, Nonlinear, and Soft Matter Physics 84(4 Pt 2): 046101

The influence of directors has been one of the most engaging topics recently, but surprisingly little research has been done to quantitatively evaluate the influence and power of directors. We analyze the structure of the US corporate governance network for the 11-year period 1996-2006 based on director data from the Investor Responsibility Research Center director database, and we develop a centrality measure named the influence factor to estimate the influence of directors quantitatively. The US corporate governance network is a network of directors with nodes representing directors and links between two directors representing their service on common company boards. We assume that information flows in the network through information-sharing processes among linked directors. The influence factor assigned to a director is based on the level of information that a director obtains from the entire network. We find that, contrary to commonly accepted belief that directors of large companies, measured by market capitalization, are the most powerful, in some instances, the directors who are influential do not necessarily serve on boards of large companies. By applying our influence factor method to identify the influential people contained in the lists created by popular magazines such as Fortune, Networking World, and Treasury and Risk Management, we find that the influence factor method is consistently either the best or one of the two best methods in identifying powerful people compared to other general centrality measures that are used to denote the significance of a node in complex network theory.

Please choose payment method:

(PDF emailed within 0-6 h: $19.90)

Accession: 053675505

Download citation: RISBibTeXText

PMID: 22181221

DOI: 10.1103/physreve.84.046101

Related references

The Role of the Senior HR Executive in Japan and the United States: Employment Relations, Corporate Governance, and Values. Industrial Relations: A Journal of Economy and Society 44(2): 207-241, 2005

Corporate Governance and Directors Remuneration: Views from the Top. Business Strategy Review 9(4): 21-30, 1998

A new compact for owners and directors. The Working Group on Corporate Governance. Harvard Business Review 69(4): 141-143, 1991

The Directors' and Officers' Insurance Premium: An outside Assessment of the Quality of Corporate Governance. Journal of Law Economics and Organization 16(2): 449-477, 2000

"Fiduciary Capitalism," the "Political Model of Corporate Governance," and the Prospect of Stakeholder Capitalism in the United States. Review of Radical Political Economics 37(1): 39-62, 2005

The role of directors and officers insurance in corporate governance: evidence from the high-tech industry in Taiwan. International journal of technology management = Journal international de la gestion technologique0(1-3): 229-247, 2007

Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition. Journal of Law Economics and Organization 1(1): 101-124, 1985

A multiple network approach to corporate governance. Quality & Quantity 49(4): 1585-1595, 2015

Corporate Politics, Governance, and Value Before and After Citizens United. Journal of Empirical Legal Studies 9(4): 657-696, 2012

Top Executive Pay in the United Kingdom: A Corporate Governance Dilemma. International Journal of the Economics of Business 6(2): 223-243, 1999

Identifying highly influential nodes in the complicated grief network. Journal of Abnormal Psychology 125(6): 747-757, 2017

Mentoring Aspiring Program Directors in Adult Cardiothoracic Anesthesiology-Perspectives From Program Directors Around the United States. Journal of Cardiothoracic and Vascular Anesthesia 32(5): 2381-2394, 2018

How Far Does the United Kingdom have a Market-based System of Corporate Governance? A Review and Evaluation of Recent Developments in the United Kingdom. Competition and Change 9(1): 107-127, 2005

The Network Properties of Corporate Governance and Industrial Restructuring: A Post-Socialist Lesson. Industrial and Corporate Change 7(1): 153-193, 1998

Identifying influential nodes based on network representation learning in complex networks. Plos One 13(7): E0200091, 2018