Modeling of the Influence of Social Capital on the Corporate Performance

Two samples of Russian banks (more than 700 pieces over a three-year period) were analyzed: recall of the license for economic reasons, and recall of the license for money laundering (FZ 115). Financial variables were generated on the basis of banks' reports and variables responsible for social capital, using network theory. The use of multivariable fractional polynomials reveals nonlinear significant relationships between the probability of a license recall and the social capital. In this case, the most suitable for analysis were variables that characterize the qualitative side of the bank's connection, not just the number of links. On the other hand, the relationship of the indicator responsible for the intensity of the use of network and the probability is very low, albeit significant, in the case of FMS 115. For cases of recall for economic reasons, the intensity turned out to be significant only in one model. The nature of the relationship was unexpected (more active use of the network is associated with a higher risk of license recall).