The Effect Of Interlocking Directorate Network On Illegal Information Disclosure

In the field of corporate governance,it is a new research direction to study the governance function of interlocking directorates based on the perspective of social network.Theoretically,as an important part of corporate governance,interlocking directorates can effectively supervise the information disclosure process of listed companies,suppress illegal information disclosure,improve the quality of information disclosure,so as to perfect and promote the development of listed corporate governance.Through arrangement and analysis of the existing literature on information disclosure,it is found that the research mainly discusses the illegal information disclosure in terms of corporate governance characteristics,such as corporate governance structure,shareholding structure,size of the company,size of the board of directors,independence of the board of directors,etc.It seldom considers the governance effect of interlocking directorate network on corporate illegal information disclosure.Based on the social network perspective,this paper portrays the governance capabilities of interlocking directorates in their social networks,and examines the effect of interlocking directorates on the illegal information disclosure of listed companies.In addition,in the background of deepening reform of state-owned enterprises,considering the heterogeneity of state-owned and non-state-owned enterprises in corporate governance mechanism and operation mode in the current Chinese capital market,this paper further investigates the different nature of the property rights of listed companies,whether there are differences in effective governance role on the interlocking directorates.From the perspective of interlocking directorates,this article uses the network centrality to measure the influence of interlocking directorates and investigate the effect of interlocking directorate network on illegal information disclosure.This paper takes the A-share listed company from 2011 to 2016 as the sample,uses a linear regression model and tempirically analyze the relationship between interlocking directorate network andillegal information disclosure.It was found that interlocking directorate network centrality has a significant negative correlation with illegal information disclosure.That is,the closer the network location of a interlocking directorate is to the center,the lower the frequency of disclosure violations by the company.It shows that the position of interlocking directorates in its affiliated network can have a positive impact on its supervisory power and inhibit the occurrence of listed companies' illegal information disclosure.The interlocking directors in the center of the network can master more professional information and knowledge,improve the willingness and initiative of supervision and the ability to supervise,so as to give full play to the function of supervision and governance and effectively restrict illegal information disclosure.In addition,this paper further studies the inhibitory effect of interlocking directorates on illegal information disclosure of companies with different property rights.The results show that compared with the state-owned enterprises,the interlocking directorate network of non-state-owned enterprises has more obvious inhibitory effect on information disclosure.In order to make the results more reliable and robust,the 0,1 sample method and the median of the interlocking directorate network centrality are used as a substitute variable to retest the regression.And the test results are consistent with the results before replacement.The innovation of this paper lies in: firstly,breaking through the limitations of a single study on the characteristics of corporate governance,this paper starts with the network of interlocking directorates,uses network centrality to measure the connection relationship between the interlocking directorates to investigate the influence of the transfer function and supervision function of interlocking directorates on illegal information disclosure.It enriches the research results of the factors affecting the listed companies' illegal information disclosure to some extent.Secondly,for the measurement of illegal information disclosure,the existing literatures mostly uses 0,1 sample method.This article uses the frequency of listed company's illegal information disclosure and reveals the effect of interlocking directorate network on illegal information disclosure more scientifically to make the research result more convincing.