Peer Effects, Board Interlocking and the Perception of Political Risk of US Firms, 2002-2022
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2025-07-04
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en
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This thesis researches whether the political risk perception of peer firms’ political risk perception, defined through board interlocks, positively affects the political risk perception of the focal firm. In theory based on the board interlocked networks literature, information related to political risk would spread through these networks. Political risk perception is measured through computational textual analysis of transcripts of Earnings Conference Calls of publicly listed firms in the US. Linear in Means modelling was used based on the Peer Effects literature. Robustness tests included measuring the effect of indirect board interlocks and testing if the CEO, CFO or IR was on the board. The study finds mixed evidence that political risk information of firms spreads through these networks and influences other firms’ political risk perception. I find a small amount of evidence for indirectly board interlocked networks, but not through directly board interlocked networks. The results are not completely in congruence with the well established literature. In the discussion, several possible reasons are discussed for this result. No clear explanation could be found, and therefore multiple avenues of research are open for further investigation.
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Faculteit der Managementwetenschappen