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http://dx.doi.org/10.7737/KMSR.2012.29.2.167

A Study on Relation between Corporate Governance and Business Performance using Social Network Analysis  

Park, Byung-Sun (NICE신용평가정보)
Kwahk, Kee-Young (국민대학교 경영정보학부)
Kim, Sun-Woong (국민대학교 비즈니스IT전문대학원)
Choi, Heung-Sik (국민대학교 경영정보학부)
Publication Information
Korean Management Science Review / v.29, no.2, 2012 , pp. 167-184 More about this Journal
Abstract
Business diversification is inevitable to survive under the current competitive business environments. The advent of new businesses makes corporate governance more complicated through corporate combinations. Recent introduction of new accounting standard, International Financial Reporting Standards(IFRS), accelerates the need for corporate governance analysis. This study analyses the complex corporate governance system and its relation to the business performance using social network analysis. Corporate inter-governance networks can be visualized easily in a social network diagram. 552 corporate governance data are empirically analysed in the Korean stock market. The changes in In-Degree between networks are positively related with the changes in corporate sales volume. We can find the same results using operating profits as corporate performance proxy. The results show that social network analysis technique can be applied to investments in the stock markets.
Keywords
Corporate Governance; Social Network Analysis; In-Degree; Business Performance; Stock Market;
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