Affiliated Directors and Earning Quality:Social Network Perspective

• Main Authors: Chen,Wuchou, 陳威州
• Other Authors: Hsu,Ente
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/23417657887804277066

碩士 === 東海大學 === 會計學系 === 99 === This study examines the relationship between interlocking directorates and earing quality. There are “busy effect” and “reputation effect” due to the different of strength of relationship among board members. In this study, I use interlocking directorates to measure corporate social network and explore the effect of centrality and structural holes. In all samples, there is a significant negative relationship between centrality and earnings quality; structural holes and earnings quality have positive relationship, but it is not significant. In addition, I use the median to distinguish the relationship strength of interlocking directorates for their centrality and structural holes. The results indicate that the strong links of interlocking directors will demage earnings quality because of busy effect; on the other hand, the weak links of interlocking directorswill increase earnings quality because of reputation effect. The main contributions of this study not only found the relationship between interlocking directorates and earing quality, but also found there are busy effect and reputation effect will occur depend on the connections they have.