How much does the social net worth of business leaders benefit their firms? Researchers Kathy Fogel, Liping Ma and Randall Morck have found that the social networks of powerful independent directors of different firms is positively correlated with the shareholder valuations of the company. So much so that their coming on board raises shareholder value and their sudden deaths hit it hard. Their presence also ensured fewer hostile M&As and accountability in case of significant failures of leadership.
Title: Powerful independent Directors
Source: Social Science Research Network