Relation between the Boardroom Centrality and the Firm Performance

Abstract

How managers’ social network would affect a firm's performance, and what kind of relationship between them are two main points we discuss during our research. We evaluate a manager in four centralities: degree centrality, closeness centrality, betweenness centrality, and eigenvector centrality, and compare to their company performance. Overall, our results suggest that executives’ social networks relate tightly to firm performance and have a positive relation to it.