Title

Getting them to think outside the circle: Corporate governance, CEOs' external advice networks, and firm performance

Authors

Authors

M. L. McDonald; P. Khanna;J. D. Westphal

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Acad. Manage. J.

Keywords

STRATEGIC DECISION-MAKING; AGENCY THEORY PERSPECTIVE; MANAGERIAL; INCENTIVES; FINANCIAL PERFORMANCE; SOCIAL-INFLUENCE; WEAK TIES; OWNERSHIP; MANAGEMENT; DIRECTORS; BOARD; Business; Management

Abstract

This article contributes to the social networks literature by examining how corporate governance factors influence CEOs' external advice-seeking behaviors. We incorporate insights from social networks research into an agency theory perspective to predict, and demonstrate empirically, that governance factors recommended by agency theory increase CEOs' tendencies to seek out advice contacts who are likely to offer perspectives on strategic issues that differ from their own; these advice-seeking behaviors ultimately enhance firm performance. Accordingly, this article also contributes to the corporate governance literature by describing how and why CEOs' advice networks mediate the effects of governance factors on firm performance.

Journal Title

Academy of Management Journal

Volume

51

Issue/Number

3

Publication Date

1-1-2008

Document Type

Article

Language

English

First Page

453

Last Page

475

WOS Identifier

WOS:000257297100004

ISSN

0001-4273

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