The core of board networks and firm value

We examine the statistical and dynamic properties of board networks connected through interlocking directorates. find that degree distribution a network follows power-law distribution. Furthermore, evolution core–periphery structure over time is related to market stability. This result implies firms, when densely other boards, would like keep their position as core groups in networks. Firm value shows statistically positive relationship with firms centrally positioned network. Overall, we suggest can help us understand stability serve an alternative information channel for increasing firm value. These findings imply uncover transmission during global financial crisis. paper contributes interdisciplinary applications physics economics finance terms dynamics