Outside director appointment in Korean business groups: the role of stakeholder networks

Abstract

This study sets out to explain what determines the appointment of outside directors in Korean business groups. Building on the extant theoretical literature on social network theory, the effect of stakeholder networks on the appointment of outside directors in Korean business groups is examined. With the assumption that a firm’s social network, which is comprised of the firm’s stakeholders, affects the appointment of outside directors, testable research propositions are presented.