The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market
Starting from sociological perspectives on complexity, we show how the social capital of boards and owners networks affects the implied cost of capital of companies listed on Brazilian stock exchange. We specifically show arguments and evidence that the effect of the relational resources found in th...
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| Format: | Article |
| Language: | English |
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Wiley
2018-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2018/6248427 |
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| _version_ | 1832552868456955904 |
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| author | Luciano Rossoni Cezar Eduardo Aranha Wesley Mendes-Da-Silva |
| author_facet | Luciano Rossoni Cezar Eduardo Aranha Wesley Mendes-Da-Silva |
| author_sort | Luciano Rossoni |
| collection | DOAJ |
| description | Starting from sociological perspectives on complexity, we show how the social capital of boards and owners networks affects the implied cost of capital of companies listed on Brazilian stock exchange. We specifically show arguments and evidence that the effect of the relational resources found in the direct, indirect, and heterogeneous board’s ties reduces the cost of capital while relational resources embedded in shareholder networks increase the cost of capital. Our results show that while the increase in the relational resources of the board reduces the implied cost of capital, an increase in these shared resources in the ownership relationships of the firm increases the cost of financial capital. |
| format | Article |
| id | doaj-art-92846ef313844b18a29089a440e01471 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-92846ef313844b18a29089a440e014712025-02-03T05:57:41ZengWileyComplexity1076-27871099-05262018-01-01201810.1155/2018/62484276248427The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging MarketLuciano Rossoni0Cezar Eduardo Aranha1Wesley Mendes-Da-Silva2UniGranRio, Rio de Janeiro, RJ, BrazilIBM Research, Curitiba, PR, BrazilFundação Getúlio Vargas, São Paulo, SP, BrazilStarting from sociological perspectives on complexity, we show how the social capital of boards and owners networks affects the implied cost of capital of companies listed on Brazilian stock exchange. We specifically show arguments and evidence that the effect of the relational resources found in the direct, indirect, and heterogeneous board’s ties reduces the cost of capital while relational resources embedded in shareholder networks increase the cost of capital. Our results show that while the increase in the relational resources of the board reduces the implied cost of capital, an increase in these shared resources in the ownership relationships of the firm increases the cost of financial capital.http://dx.doi.org/10.1155/2018/6248427 |
| spellingShingle | Luciano Rossoni Cezar Eduardo Aranha Wesley Mendes-Da-Silva The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market Complexity |
| title | The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market |
| title_full | The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market |
| title_fullStr | The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market |
| title_full_unstemmed | The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market |
| title_short | The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market |
| title_sort | complexity of social capital the influence of board and ownership interlocks on implied cost of capital in an emerging market |
| url | http://dx.doi.org/10.1155/2018/6248427 |
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