The evolution of the board interlock network following Sarbanes-Oxley Academic Article uri icon

abstract

  • 2017 We examine the impact of the passage of Sarbanes-Oxley (SOX) on the evolution of the board interlock network for Fortune 300 firms during the 19982006 period using a stochastic actor-oriented model. Placing particular emphasis on director accountability and board independence, SOX created considerable disparity in demand and supply in the labor market for corporate directors. We examine whether the regulatory change may have led firms to draw more on socially embedded processes of board interlock partner selection such as reciprocity, transitivity, and multiplexity after SOX. We find that after the passage of SOX, a firm's tendency to reciprocate board interlock ties has been reinforced. Similarly, firms appear to have relied more on their existing alliance partners to fill their board seats in the post-SOX period.

published proceedings

  • SOCIAL NETWORKS

altmetric score

  • 1.25

author list (cited authors)

  • Withers, M., Kim, J., & Howard, M.

citation count

  • 10

complete list of authors

  • Withers, Michael||Kim, Ji Youn Rose||Howard, Michael

publication date

  • January 2018