Stergios Athianos, Dimitrios Kydros ORCID logo



In this paper, we examine a set of Greek Listed Companies with respect to the interconnections between their Boards of Directors (BoD’s). Our main objective is to examine if and to what extent these Directors are interlocked, and if this possible interlocking may affect the course of economic or financial decisions through the information content of announced earnings, including implications on the current financial crisis in Greece. For this purpose, we use two different modes of research methodology, namely social network analysis and OLS methodology (panel analysis). The results of this study indicate the existence of a highly connected and interdependent network between companies and the people constitute the BoD’s. Also, the results show that in their entirety the companies are related and there is a high degree of interaction. These results lead to interesting theoretical and policy implications: could such a high interconnection lead to an extreme risk of total failure of the system in periods of hard times? To what extent should the state through its regulatory instruments (laws, market observers) try to affect the actual forming of Listed Companies BoD’s? Has this interlocking played its role in the Greek Economic Crisis, etc.?

Keywords: Social Network Analysis, Dynamic Network Analysis, Corporate Governance, Ownership Structure of Enterprises

JEL Classification: C4, Z1, G30, G32, G34

Received: 24.01.2018

Accepted: 12.03.2018

Published online: 26.03.2018

How to cite this paper: Athianos, S., & Kydros, D. (2018). Corporate governance and social networks: The relationship between the board of directors and earnings management. Corporate Ownership & Control, 15(3), 80-91.

Amount: 14 EUR

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