Social capital (Sociology)

Local social capital, defined as the level of community interaction and social participation of a region, has been theorized to positively affect economic outcomes and discourage opportunistic behaviors in various settings. I examine whether local social capital is related to positive outcomes for entrepreneurs and their financial backers in the settings of reward crowdfunding and small business lending.
In my first study, I look at how local social capital influences the creators of successful reward crowdfunding campaigns. These creators, in turn, may influence the sentiment of their investors, or backers, towards their projects through missed delivery deadlines and poor communication. With comments collected from successful Kickstarter crowdfunding pages, I use textual analysis to construct a measure of the sentiment of project backers following the fundraising deadline.

In Essay 1, I investigate the association between CEOs’ social capital and stock price informativeness in a sample of US firms. After accounting for the fact that larger networks attract more analysts following, I find that firms with larger CEO social capital exhibit higher private information incorporation and hence more informative stock prices. Results are consistent for five different proxies for stock price informativeness. Furthermore, the positive association between social capital and informativeness is driven by more diverse networks, as measured by gender, nationality, education, or professional diversity. Overall, results suggest that private information existing in networks may result in markets that are more informationally efficient.
In Essay 2, I show that CEOs’ social capital has a positive impact on stock price informativeness in an international sample. Different robustness and endogeneity tests confirm those results. Moreover, I find that factors present at the country level can mitigate or reinforce social capital’s impact on informativeness. I consider characteristics not observable within one country that can influence such relation around the world including legal, cultural, and developmental. I uncover that for more developed countries and those with a higher quality of institutions a positive impact of social connectedness is more pronounced. In addition, I show the importance of CEOs’ connections characteristics for their impact on stock price informativeness. I find that if CEOs’ connections come from developed countries or countries that have better formal and informal institutions which affect information transparency, CEOs’ social capital becomes more important for informativeness.

Increasing evidence suggests the personal traits of chief executive officers (CEOs) can influence corporate policies. We examine how one dimension, past professional experiences, can affect corporate payout policy. Exploiting exogenous CEO turnovers and future employment, we hypothesize that CEOs experiencing a distress event in their past career alter the corporate payout policy at their subsequent firm of employment. We discover that CEOs having experienced prior professional career distress are less likely to pay dividends and use repurchases and pay out lower levels for each type of payout. Additionally, when CEOs with distress do have a payout policy greater than zero dollars, there exists a preference toward the use of repurchases in the payout policy, adding to the literature of substitution and differences between the two forms of payout. We find that dividend smoothing is reduced by CEOs that have past professional distress.

This study looks at artists’ careers as paths defined by their relative position in a
dynamic professional network where innovation and creativity are highly regarded.
Today, the theoretical and empirical study of networks has demonstrated that in some
professions the individuals’ position in the network can facilitate or constrain their
success. In studies about diffusion of information, for instance, some authors have found
that individuals connected to a greater variety of sources are more creative and perform
better. I explored this idea by looking at a network of visual artists and art institutions in
Miami, and found a positive correlation between position and success, though, not
explained by variety exclusively. In the network, artistic success is a function of
connecting both across artistic categories and a hierarchical system; therefore, in an art
world, creativity and innovation are mediated by key members, who distribute
information and resources through affiliation, prominence and brokerage.

This study examines the effects of epistemic motives and individual social structure (strength of social ties) on individual actions. lt has been suggested that the informal structure of relations that develops within firms affects the actions of individuals
e effects of both epistemic motives and social structure are considered. The findings of this study suggest that information about the epistemic motives of employees can provide insight into the fonnation of the individual social structures and the intrinsic desire of employees to take interdependent or independent actions. The
effects of epistemic motives and individual social structure on individual actions, the
organizing process and the formulation and implementation of strategies are discussed.

Researchers who study Brazilian immigrants in the United States have noted a lack of camaraderie and social networks among Brazilians. Based on recent research conducted in Broward County, Florida, Manuel Vâasquez argues that while there are clear structural impediments to community formation among Brazilian immigrants, Brazilians do form social networks. This thesis examines the survey and ethnographic data from Vâasquez's sample to test a series of hypotheses about which factors impact levels of social capital and the potential for network creation and mobilization among Brazilian immigrants. Analysis of the data suggests that religious participation and levels of perceived discrimination are correlated with higher levels of social capital in this sample. For a group of immigrants characterized by a lack of collective solidarity and facing an increasingly hostile economic and social climate, religious organizations may be essential locales for achieving sufficient social capital for social, economic, and political integration.