Director Networks, Turnover, and Appointments

Luc Renneboog, Yang Zhao

Research output: Working paperDiscussion paperOther research output

332 Downloads (Pure)


This paper analyzes the labor market (turnover and appointments) of executive and non-executive directors by means of social network methodology. We find that directors with strong networks are able to obtain labor market information that enables them to leave their firm more easily for better opportunities. Networks also mitigate information asymmetry problems of external director appointments. Furthermore, the strong impact of indirect connections is in line with the ‘strength of the weak ties’ theory. The fact that direct connections are less important signifies that the connections to people that are close and local are likely to convey redundant information, whereas connections to distant individuals are more efficient in terms of information acquisition and labor market performance improvement.
Original languageEnglish
Place of PublicationTilburg
PublisherCentER, Center for Economic Research
Number of pages42
Publication statusPublished - 11 Sept 2017

Publication series

NameCentER Discussion Paper


  • corporate governance
  • director networks
  • director turnover
  • director appointments


Dive into the research topics of 'Director Networks, Turnover, and Appointments'. Together they form a unique fingerprint.

Cite this