The evolution of the board interlock network following Sarbanes-Oxley

We examine the impact of the passage of Sarbanes-Oxley (SOX) on the evolution of the board interlock network for Fortune 300 firms during the 1998–2006 period using a stochastic actor-oriented model. Placing particular emphasis on director accountability and board independence, SOX created considerable disparity in demand and supply in the labor market for corporate directors. We examine whether the regulatory change may have led firms to draw more on socially embedded processes of board interlock partner selection such as reciprocity, transitivity, and multiplexity after SOX. We find that after the passage of SOX, a firm’s tendency to reciprocate board interlock ties has been reinforced. Similarly, firms appear to have relied more on their existing alliance partners to fill their board seats in the post-SOX period.     

Exponential random graph models of preschool affiliative networks

Exponential random graph models were used to assess the relevance of reciprocity, popularity, transitivity controlling for effects based upon ego and alter sex, and sex homophily, on the formation of affiliative ties in 19 Portuguese preschool peer groups. The number of times two children were recorded as nearest neighbors in focal samples was used as an indicator of the relationship's strength. Independent parameter estimates of the different models (one for each group) were summarized, separately for the three age groups (“3-year-olds”, “4-year-olds” and “5-year-olds”) using a multi-level approach to meta-analysis. Results showed that affiliative ties between children were sex segregated, highly reciprocal, more likely to be directed to a restricted number of children and with a tendency to create transitive triads. The structural processes underlying the formation of affiliative ties were quite stable between classrooms.     

The interplay between formal project memberships and informal advice seeking in knowledge-intensive firms: A multilevel network approach

In this study we investigate the interplay between knowledge workers’ formal project team memberships and their informal interactions from a multilevel network perspective. Conceptualizing knowledge workers’ affiliation with project teams as a membership network and their interactions as an advice network, we discuss how shared project team memberships as well as multiple memberships influence patterns of informal exchange in knowledge-intensive organizations. To empirically determine the impact of formal organization on informal exchange we apply exponential random graph models for multilevel networks to relational data collected on 434 R&D employees working on 218 project teams in a high-tech firm in Germany. Our results show that employees sharing project memberships create advice ties to each other but do not exchange advice reciprocally. In addition, we find a negative relationship between having a high number of project memberships and informally seeking or providing advice.     

Avoidance,antipathy, and aggression: A three-wave longitudinal network study on negative networks,status, and heteromisos

Our aim is to explain negative networks in Dutch high schools, using three-wave stochastic actor oriented models (SAOMs). We differentiate between avoidance, antipathy, and aggression based on how costly and visible these behaviours are. Our results show that pupils’ ethnicity does not explain negative ties. Moreover, we do not find that negative ties form archetypical social hierarchies, formed by networks that are asymmetrical and transitive. Instead, we find positive effects of reciprocity on avoidance, antipathy, and aggression, and we find no effects of transitivity. Rather than allowing themselves to be dominated by their classmates, pupils fight back and reciprocate negative behaviour. We further show that some pupils behave negatively to a lot of their classmates, and that some pupils are treated negatively by many classmates. These results require us to reconsider what status hierarchies look like. Finally, we explore the extent to which the avoidance, antipathy, and aggression networks co-evolve.     

Representing degree distributions, clustering, and homophily in social networks with latent cluster random effects models

Social network data often involve transitivity, homophily on observed attributes, community structure, and heterogeneity of actor degrees. We propose a latent cluster random effects model to represent all of these features, and we develop Bayesian inference for it. The model is applicable to both binary and non-binary network data. We illustrate the model using two real datasets: liking between monks and coreaderships between Slovenian publications. We also apply it to two simulated network datasets with very different network structure but the same highly skewed degree sequence generated from a preferential attachment process. One has transitivity and community structure while the other does not. Models based solely on degree distributions, such as scale-free, preferential attachment and power-law models, cannot distinguish between these very different situations, but the latent cluster random effects model does.     

Reciprocity,transitivity, and the mysterious three-cycle

Reciprocity and transitivity are the two most important structural mechanisms underlying friendship network evolution. While on their own they are understood in great detail, the relation between them is rarely studied systematically. Are friendships outside of social groups more or less likely to be reciprocated than friendships embedded in a group? Using a theoretical framework that focusses on the situations in which friends interact and the social structures that stabilise one-sided friendships, I propose that the tendency towards reciprocation of friendships within transitive groups is usually lower than outside of transitive groups. In a meta-analysis of two datasets including 29 friendship networks using stochastic actor-oriented models (SAOMs), the interaction between reciprocity and transitivity is analysed. Supporting the theoretical reasoning, the interaction is consistently negative. Second, the tendency against forming three-cycles in friendship networks, which was consistently found in previous studies, is shown to be spurious and a result of neglecting to control for the tendency against reciprocation in transitive groups. The tendency against three-cycles is commonly seen as an indicator that unreciprocated friendships indicate local hierarchy differences between individuals; this proposition has to be re-evaluated in light of the findings of this study. Future studies that analyse the evolution of friendship networks should consider modelling reciprocation in transitive triplets and potentially omit modelling three-cycles.     

How Good Are Networks for Migrant Job Seekers? Ethnographic Evidence from North Carolina Farm Labor* Camps

Migrant farmworker networks are vital components in their job seeking and underemployment minimization strategies. Yet, farmworker cultural, physical, and institutional isolation along with the itinerant and clandestine features of farmwork have become major obstacles in the development of robust lateral communitywide network ties that would otherwise favor reciprocity and resource sharing. Thus, contrary to the positive social capital assumption, we argue that the paucity and fragmented features of farmworkers’ lateral ties have increased their vulnerability and locked them in exploitative relationships in a hostile social environment that makes impractical or impossible the formation of alternative ties. Our study is based on participant observation through a 6‐week stay in three North Carolina farm labor camps. On‐site evidence shows that the two larger groups of solitary male farmworkers and farmworking families break up into smaller groups, each group in pursuit of its own short‐term goals. We conclude that, even though farmworker networks help them to find and ensure temporary jobs, their inability to use the networks to share resources is ultimately detrimental for participants’ long‐term socioeconomic prospects.     

Advances in biased net theory: definitions,derivations, and estimations

Random and biased net theory, introduced by Rapoport and others in the 1950s, is one of the earliest approaches to the formal modeling of social networks. In this theory, intended as a theory of large-scale networks, ties between nodes derive both from random and non-random events of connection. The non-random connections are postulated to arise through “bias” events that incorporate known or suspected systematic tendencies in tie formation, such as, mutuality or reciprocity, transitivity or closure in triads, and homophily—the overrepresentation of ties between persons who share important socio-demographic attributes like race/ethnicity or level of educational attainment. A key problem for biased net theory has been analytical intractability of the models. Formal derivations require approximation assumptions and model parameters have been difficult to estimate. The accuracy of the derived formulas and the estimated parameters has been difficult to assess. In this paper, we attempt to address long-standing issues in biased net models stemming from their analytical intractability. We first reformulate and clarify the definitions of basic biases. Second, we derive from first principles the triad distribution in a biased net, using two different analytical strategies to check our derivations. Third, we set out a pseudo-likelihood method for parameter estimation of key bias parameters and then check the accuracy of this relatively simple but approximate scheme against the results obtained from the triad distribution derivation.     

Who’s missing out? The impact of digital networking behavior & social identity on PR job search outcomes

This study investigates how different aspects of social identity correlated with online networking and job search success. Undergraduates and recent graduates seeking public relations roles between 2020 and 2021 were surveyed (N = 355) for their early career job-seeking practices. The pre-existing lack of diversity in PR and the tendency to favor job candidates who are similar to the decision-maker means that the move to virtual relationship building and vetting may be especially impactful for diverse applicants. The results showed that networking was extremely important as over 94% of respondents found their position via networking of some sort. Respondents found roles most commonly via LinkedIn (57.5%), followed by other social media (49.9%). LinkedIn network size was positively correlated with more job offers, whereas Twitter and Facebook network sizes were insignificant. Those who identified as white used LinkedIn more and had more job offers than those who identified as BIPOC. Veterans and those receiving need-based assistance also reported having fewer job offers. This paper extends the strength of weak ties theory by demonstrating the importance of weak ties in digital networking in the PR industry. This research suggests that maintaining weak ties via LinkedIn is valuable for success in digital networking, particularly by growing a robust LinkedIn network and maintaining an active profile. Practical advice for PR educators and students illustrates how to enhance LinkedIn use to promote equity in digital networking. Moreover, the PR field may promote diversity among applicants and hires through mentoring, recruiting, and growing their own diverse digital network.     

Farm size shapes friend choice amongst rice producers in China: Some evidence for the theory of network ecology

Multiple dynamics jointly determine who we befriend, however, researchers have failed to systematically assess which processes matter most under different circumstances. Here I draw on observations around how the demands of paddy rice cultivation shape social interaction to demonstrate that the relative importance of reciprocity, transitivity and generalised exchange to who rice producers choose as friends varies with the amount of agricultural land under their control. In doing so, I use unique data on farm size and friendship amongst 4713 rice-growing smallholders in 162 rural villages in Jiangxi, China along with a new technique for measuring the relative importance of effects in Stochastic Actor-Oriented Models. In line with the micro-level component of the recently advanced “theory of network ecology”, results suggest that features of an individual’s proximal environment can powerfully moderate the relative expression of network-formation mechanisms such that for some individuals, a dynamic may be expected to hold substantial sway over the process of choosing social contacts and, for others, no sway at all.     

PERSONALITY,INFORMATION ACQUISITION,AND CHOICE UNDER UNCERTAINTY: AN EXPERIMENTAL STUDY

This article studies the role of personality in choice under risk and uncertainty. We explore the hypothesis that personality plays a role in decision making in situations of uncertainty but not in situations of risk. In addition to offering support for this main hypothesis, we explore the various pathways through which personality exerts its influence. What we find is that in uncertain environments, where decision makers are able to acquire information about the unknown probability distributions they face, personality variables influence the type of information people acquire, which then influences their choice. Our experimental design brings in two novel aspects of choice under uncertainty: information acquisition and advice. The findings indicate that indeed, under uncertainty, personality matters for choice in a way it does not under risk. Furthermore, the results suggest that personality can play a role at multiple levels, such as people's preferences for certain types of information and the likelihood of following advice. (JEL C90, D03, D81)     

Where do intra-organizational advice relations come from? The role of informal status and social capital in social exchange

Social status and social capital frameworks are used to derive competing hypotheses about the emergence and structure of advice relations in organizations. Although both approaches build on a social exchange framework, they differ in their behavioral micro-foundations. From a status perspective, advice giving is a means to generate prestige, whereas asking advice decreases one's relative standing. At a structural level these motivations are expected to result in an overrepresentation of non-reciprocal dyads and non-cyclical triadic structures in the advice network, as well as in active advice seekers being unlikely to be approached for advice, especially by active advice givers. From a social capital perspective, advice seeking creates obligations for the advice seeker. At the structural level, this results in an overrepresentation of reciprocal dyads and cyclical triads, and active advice seekers to be unpopular as targets of advice seeking, especially for active advice givers. Analyses of four waves of a longitudinal sociometric study of 57 employees of a Dutch Housing Corporation provide partial support for both approaches. In line with the social capital perspective, we find reciprocal advice relations to be overrepresented at the dyad level. Results at the triad level support the social status arguments, according to which high status individuals will avoid asking advice from low status individuals. The implications for macro-structural properties of intra-organizational advice network are discussed.     

FIRM SURVIVAL,UNCERTAINTY, AND FINANCIAL FRICTIONS: IS THERE A FINANCIAL UNCERTAINTY ACCELERATOR?

Using a large panel of unquoted UK firms over the period 2000–2009, we examine the impact of firm‐specific uncertainty on corporate failures. In this context we also distinguish between firms which are likely to be more or less dependent on bank finance as well as public and nonpublic companies. Our results document a significant effect of uncertainty on firm survival. This link is found to be more potent during the recent financial crisis compared with tranquil periods. We also uncover significant firm‐level heterogeneity because the survival chances of bank‐dependent and nonpublic firms are most affected by changes in uncertainty, especially during the recent global financial crisis. (JEL E44, F32, F34, G32)     

Closure,connectivity and degree distributions: Exponential random graph (p*) models for directed social networks

The new higher order specifications for exponential random graph models introduced by Snijders et al. [Snijders, T.A.B., Pattison, P.E., Robins G.L., Handcock, M., 2006. New specifications for exponential random graph models. Sociological Methodology 36, 99–153] exhibit substantial improvements in model fit compared with the commonly used Markov random graph models. Snijders et al., however, concentrated on non-directed graphs, with only limited extensions to directed graphs. In particular, they presented a transitive closure parameter based on path shortening. In this paper, we explain the theoretical and empirical advantages in generalizing to additional closure effects. We propose three new triadic-based parameters to represent different versions of triadic closure: cyclic effects; transitivity based on shared choices of partners; and transitivity based on shared popularity. We interpret the last two effects as forms of structural homophily, where ties emerge because nodes share a form of localized structural equivalence. We show that, for some datasets, the path shortening parameter is insufficient for practical modeling, whereas the structural homophily parameters can produce useful models with distinctive interpretations. We also introduce corresponding lower order effects for multiple two-path connectivity. We show by example that the in- and out-degree distributions may be better modeled when star-based parameters are supplemented with parameters for the number of isolated nodes, sources (nodes with zero in-degrees) and sinks (nodes with zero out-degrees). Inclusion of a Markov mixed star parameter may also help model the correlation between in- and out-degrees. We select some 50 graph features to be investigated in goodness of fit diagnostics, covering a variety of important network properties including density, reciprocity, geodesic distributions, degree distributions, and various forms of closure. As empirical illustrations, we develop models for two sets of organizational network data: a trust network within a training group, and a work difficulty network within a government instrumentality.     

The Effect of Attachment Theory in the Development of Eating Disorders: Can Symptoms Be Proximity-Seeking?

The relationship between attachment theory, proximity seeking behaviors and the development of eating disorders was investigated in three groups of adolescent females from various settings; 44 individuals with eating disorders, 28 clinical controls, and 36 non-clinical controls. The Inventory of Parent and Peer Attachment and the Parental Attachment Questionnaire were both used in this study and both found that the clinical groups demonstrated a weaker sense of attachment quality compared to their non-clinical counterparts. This study also expands upon John Bowlby's concept of proximity seeking, to offer a possible explanation of the function for eating disorder symptomatology. A new measure, the Proximity-Seeking Scale, found that self-reported changes in both the physical and psychological proximity needs of those with eating disorders had transpired since the clinical diagnosis of the disorder.     

Negative reciprocity and its relation to anger-like emotions in identity-homogeneous and -heterogeneous groups

Several studies have shown that social identity fosters the provision of public goods and enhances the willingness to reciprocate the cooperative behavior of group members. Nonetheless, the question of how social identity affects negative reciprocity in identity-homogeneous and -heterogeneous groups has only received little attention. Consequently, we seek to fill this gap by examining whether social identity affects individuals’ willingness to sanction deviating group members in a public good context. Moreover, we devote particular attention to the role of anger-like emotions in negative reciprocity. To test our hypotheses, we employ one-shot public good games in a strategy method with punishment opportunity and induced social identity. Our results indicate that members of identity-homogeneous groups are prone to reveal less negative reciprocity than identity-heterogeneous groups when they face contributions smaller than their own. We also find that anger-like emotions much more strongly influence punishment behavior when individuals are matched with members of different identities than in identity-homogenous groups. These findings contribute to an increased understanding of the nature of social identity and its impact on reciprocity, improving economists’ ability to predict behavior while taking emotions into consideration.     

Micro-structural foundations of network inequality: Evidence from a field experiment in professional networking

Sociological accounts of network inequality typically rely on the logic of preferential attachment, holding that individuals in a social network prefer to form ties with central rather than peripheral actors. We develop an alternative explanation for the growth of network inequality that does not require actors to have knowledge about the social position of others or to hold explicit preferences for partners based on such knowledge. Instead, we theorize that central actors benefit from being exposed to more opportunities for triadic closure, which confounds a quality- or popularity-based signal that their greater connectedness might also send. We test this prediction an observational study and a field experiment across multiple professional conferences. In the field experiment, we test whether network centrality is predictive of tie formation if the benefits that central actors receive through their disproportional exposure to second-order network neighbors are randomly suppressed. The findings demonstrate that for the same level of exposure to opportunities for triadic closure, central actors and less central actors are equally likely to be selected as network partners. We discuss how the proposed mechanism may be used to rectify social capital disadvantages among disadvantaged groups.     

Positive Attentional Bias,Attachment Style,and Susceptibility to Peer Influence

Susceptibility to peer influence may be related to activation in reward‐related brain regions. The current study extends research on the role of reward sensitivity in peer influence by examining whether preferential attention to positive emotional stimuli predicts behavior in peer interactions, and whether this association is moderated by attachment style in a sample of 36 same‐sex peer dyads. Positive attentional bias was associated with lower autonomy and greater avoidance with peers. This association was attenuated among individuals with secure attachment style. Attention to negative stimuli was associated with less avoidant and more hostile behavior during peer interactions. Results suggest that preferential attention to positive emotional stimuli is associated with greater susceptibility to peer influence, particularly in individuals low in secure attachment.     

Mobilising social network support for childcare: The case of Polish migrant mothers in Dublin

This paper describes the utilisation of support networks for the organisation of informal childcare by working Polish migrant mothers in Dublin. Grounded in a support network perspective the study employs a mixed method approach to elucidate how the mothers use local and transnational relations in their child-minding strategies, but also highlights the obstacles posed by the distant character of the latter ties. In line with previous research on support networks, we find a strong reliance on strong ties in providing instrumental and emotional support (e.g., Wellman and Wortley, 1990) but also that ‘distance’ matters (e.g., Mok et al., 2010) and shapes the network mobilisation strategies of the working mothers. Locally based weak ties, based on various forms of reciprocity, are supplemental in providing ad-hoc crisis support when transnational ties cannot be mobilized. Nonetheless, transnational ties are shown to be crucial in the childcare provision, in particular for longer spells of regular childcare.     

Explaining risky choices without assuming preferences

Economic theories of choice under uncertainty assume that agents act as if they have preferences which govern their choices between risky options. Theories differ as to the exact specification of the preference structure, but it is common to assume that preferences are complete and satisfy certain consistency requirements such as transitivity and monotonicity. In this paper, it is argued that there may be reason to doubt whether individuals act as if they have complete and consistent preferences over risky actions. Instead it is suggested that individuals should be thought of as actively constructing preferences through a process which I call rationalisation. It is then argued that rationalisation provides a basis for understanding certain experimentally observed anomalies which appear quite at odds with conventional theory.