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    Social Capital and Management Commitment

    September,24,2019        

    Theme: Social Capital and Management Commitment

    Speaker: Keng Kevin Ow Yong (Singapore Institute of Technology)

    Host: Yushi Wang (School of Accounting, SWUFE)

    Time: 2:00-3:30p.m., September 24, 2019, Tuesday

    Place: Room D301, Tongbo Building, Liulin Campus

    Sponsor: Academic Research Office, School of Accounting

    Introduction of the speaker:

    Keng Kevin Ow Yong graduated from The Fuqua School of Business, Duke University. He has taught in many universities, such as Singapore Management University , Peking University HSBC Business School and Singapore Institute of Technology. His research interests include empirical research about accounting. He has published many papers in Contemporary accounting research, Review of accounting studies, Journal of accounting and public policy, European accounting review, etc.

    Abstract:

    This study examines the effects of social capital on managerial decisions to own shares in their companies as well as its influence on dividend payout policy. Consistent with the notion that social capital induce cooperative norms and alleviate agency frictions, we document evidence demonstrating that firms with headquarters in high social capital regions are associated with higher managerial ownership and greater dividend payouts to shareholders. Further analysis indicates that the association between social capital and managerial ownership has weakened in recent years but not the association between social capital and dividend payouts. We also perform a component analysis of social capital to further understand this phenomenon. Our results suggest that social norms influence dividend commitment to a greater extent than networks, whereas social norms and networks exhibit similar effects on managerial ownership. Overall, our study adds to the growing literature on the impact on social capital in fostering good managerial behavior.

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