Download or read book Why Chinese Firms Form Interlocking Directorate Network? written by Yuemin Li and published by . This book was released on 2016 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis explores reasons behind Chinese firms' formations of interlocking directorate network by examining the relationship between interlocking directorate network and firm performance. Using a sample of 1,703 firms listed on the Shanghai and Shenzhen Stock Exchange and 5,109 firm-years over the period from 2010 to 2012, this study analyzes how interlocking social capital and positions in the network affect future firm performance measured by return on assets (ROA). The results indicate that the formation of the interlocking directorate network improve firm performance by serving as a solution to overcome uncertainties and high transaction costs caused by the institutional voids in China's transitional economy.