Productivity, managers’ social connections and the financial crisis

Hasan, Iftekhar; Manfredonia, Stefano

doi:10.1016/j.jbankfin.2022.106497

Cited by 4 publications

(1 citation statement)

References 63 publications

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“…(2020) show that the financial crisis resulted in a decrease in corporate productivity among firms that were financially constrained. Hasan and Manfredonia (2022) find that the financial crisis had a reducing impact on corporate productivity for all firms. Taken together, our results reinforce the view that the impact of media coverage on TFP is causal.…”

Section: Resultsmentioning

confidence: 99%

The power of the business media: Evidence from firm‐level productivity

Khalifa

Sheikhbahaei

Sualihu

2023

Business Fin & Account

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We examine the impact of media coverage on firm‐level productivity and find that firms with higher media coverage are associated with higher productivity. Using the launch of Barron's Online as a quasi‐shock to media coverage, we document that this relationship is causal. Further exploration shows that the positive media–productivity relationship is stronger for firms with weaker governance mechanisms and for those with higher levels of information asymmetry. We also identify an increase in reputational and career concerns and a reduction in managerial shirking as channels through which media coverage affects firm‐level productivity. The results are robust to alternative explanations and endogeneity concerns. Overall, our findings suggest that media coverage reduces managerial opportunism, and thus enhances resource deployment decisions.

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Section: Resultsmentioning

confidence: 99%

The power of the business media: Evidence from firm‐level productivity

Khalifa

Sheikhbahaei

Sualihu

2023

Business Fin & Account

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The role of instituions in the corporate debt-productivity relationship: evidence from listed firms in China

Wu³

et al. 2023

Journal of Applied Economics

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Multiple banking relationships: the role of firm connectedness

Fracasso,

Peruzzi,

Tomasi

2024

Industrial and Corporate Change

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This paper sheds light on the role of firm social connectedness in multiple banking relationships, controlling for other firm-level determinants. Using a large sample of Italian manufacturing firms, we develop novel text-based measures of firm connectedness and multiple banking relationships. We measure firm connectedness by exploiting information on the number of links that a non-financial firm has with any other non-financial firm through individuals who hold a position (such as shareholder, administrator, and technical or administrative employee) in both firms. The paper finds empirical evidence that firm connectedness is positively associated with the number of banks lending to the firm. This effect is stronger for younger, smaller, and more indebted firms, suggesting that firm connectedness favors the diffusion of soft information and ultimately their access to multiple sources of credit by reducing negotiation and transaction costs. Connectedness, on the other hand, does not seem to reduce firms’ incentives to increase the number of lenders in order to minimize hold-up risks.

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Productivity, managers’ social connections and the financial crisis

Cited by 4 publications

References 63 publications

The power of the business media: Evidence from firm‐level productivity

The power of the business media: Evidence from firm‐level productivity

The role of instituions in the corporate debt-productivity relationship: evidence from listed firms in China

Multiple banking relationships: the role of firm connectedness

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