THREE ESSAYS ON SOCIAL NETWORKS, CORPORATE MISCONDUCT, AND FIRM VALUE

This dissertation focuses on corporate misconduct in complex institutional environments. In particular, I examine how listed firms’ kinship networks and political connections shape their engagement in financial misconduct and the firm value at the onset of their misconduct scandal. The first study examines how controlling firm owners’ kinship networks influence their decisions that confront formal institutions in corporate financial misconduct. This study finds that these firms tend to engage in illegal or aggressive financial activities while simultaneously avoiding other financial misconduct to comply with the market regulations. The second study discusses how corporate political connections guide firms’ strategy and outcomes in different phases. Before building solid political connections, firms are motivated to avoid misconduct, for legitimacy and financial support from governments. The third study examines the outcome of firms violating formal and market institutions (i.e., firm value post-financial misconduct).

Author dc:creator

• CHEN DANYANG

• social networks, family firms, kinship, corporate political strategy, financial misconduct