This paper investigates the association between CEO's relative position in the social network and the likelihood of being involved in corporate fraud. Tracing a large sample of US publicly listed firms, we find that CEO network centrality is inversely related to the likelihood of fraudulent financial reporting. We also document a significant spillover effect of financial reporting behaviour from the dominant (most central) CEO to other CEOs in the same social network, suggesting that the ethical corporate behaviour of CEOs is, on average, influenced by that of their dominant CEO in the network. We further find that the role of CEO network centrality in reducing fraud risk is more prominent in firms with lower auditor quality. Overall, our results suggest that network centrality is an important CEO trait that promotes ethical financial reporting behaviour within social networks.

中文翻译：

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CEO 网络中心性和财务报告欺诈的可能性

本文研究了 CEO 在社交网络中的相对地位与参与公司欺诈的可能性之间的关联。追踪美国上市公司的大量样本，我们发现 CEO 网络中心性与财务报告欺诈的可能性成反比。我们还记录了财务报告行为从占主导地位的（最核心的）CEO 到同一社交网络中的其他 CEO 的显着溢出效应，这表明 CEO 的道德企业行为平均受到其主导 CEO 的影响。网络。我们进一步发现，在审计师质量较低的公司中，CEO 网络中心性在降低欺诈风险方面的作用更为突出。全面的，