Ownership Structure and Firm Performance in an Emerging Market: the Moderating Role of Social Networks

Abstract

ABSTRACT This study aims to exam whether firm performance is affected by ownership structure both directly and in interaction with social networks in an emerging country. We adopt 2004 data on 279 Taiwanese public electronic firms. The result finds that different levels of ownership structure have different impacts on firm performance. Besides, Taiwanese electronic firms have less interlocks than America and Singapore, while the interlocks of Taiwanese electronic firms are more likely occurred in the same industry. The article also documents that different kinds of interlocks have different relationship between interlocks and firm performance. As for the interaction between ownership structure and interlocks, there is no significant relationship between them. Keywords: Ownership Structure, Social Networks, Resource Dependence Theory