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Researchers found that the social ties

“IN THE UNIT STATES YOU KNOW THIS HAPPENS BUT YOU DON T GET TO OBSERVE IT. —JUAN MA Khanna and HBS doctoral student Juan Ma however discover data shding light on this opaque phenomenon in an unlikely place—China. In the country transition to independent boards and pass a unique law requiring board memrs of publicly trad firms to reveal when they dissent from the majority opinion along with an explanation for their decision.

China is the only country

We know of that requires this information. This provides us a very rare opportunity to monitor the performance of individual board memrs says Ma. In Lithuania WhatsApp Number List the Unit States you know this happens but you don t get to observe it. Social Influences In a recent working paper Independent Directors Dissent on Boards Evidence from List Companies in China Ma and Khanna found that the social ties of the directors had much more influence on their likelihood to dissent than firm performance. Social ties can  difficult to measure.

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Traditionally researchers have attempt

To get a handle on this subjective factor by noting connections such as directors who come from the same city or attend the same school. But that Colombia WhatsApp Numbers List fails to capture the richness of social relations that transcend such formal connections. had much more influence on the likelihood to dissent than firm performance. Photo iStockPhoto In place of those markers Ma and Khanna us a different proxy of looking at which chair appoints a director assuming that a social tie must exist tween the two.

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