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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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Differences make a difference: Diversity in social learning and value creation, Journal of Corporate Finance February (2018). Fang, Yiwei; Francis, Bill; Hasan, Iftekhar

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Fang, Yiwei; Francis, Bill; Hasan, Iftekhar 
Number of authors
Status Published
Year of publication 2018 
Date 15.02.2018 
Name of article Differences make a difference: Diversity in social learning and value creation 
Name of journal Journal of Corporate Finance
Volume of issue 48 
Number of issue February 
Pages 474-491 
Abstract Prior research has demonstrated that CEOs learn privileged information from their social connections. Going beyond the importance of the number of social ties in a CEO's social network, this paper studies the value generated from a diverse social environment. We construct an index of social-network heterogeneity (SNH) that captures the extent to which CEOs are connected to people of different demographic attributes and skill sets. We find that higher CEO SNH leads to greater firm value through the channels of better corporate innovation and diversified M&As. Overall, the evidence suggests that CEOs' exposure to human diversity enhances social learning and creates greater growth opportunities for firms.
Free text descriptor in Finnish johtajat; yritykset; sosiaaliset verkostot; informaatio 
Free text descriptor in English Social networks; Human diversity; Firm value 
JEL-codes L14; J15; J24; G30 
ISSN / e-ISSN 0929-1199 
auki Internet addresses
Additional information Available online 5 December 2017.