I came across an interesting read the other day surfing my digital The Economist. The article summarizes an academic paper by three foreign professors entitled "Directors as Connectors: The Impact of the External Networks of Directors on Firms".

The paper's point of departure is that in the U.S., the external networks of a company's board of directors significantly impact firm value and decisions. The authors hypothesize that such relationships drive business in proportion to the strength of linkages between the BOD and state-level politicians, especially newly-elected governors.

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