Skip to main content
PGIM Quantitative Solutions LogoPGIM Quantitative Solutions Logo
    • Our Solutions
    • Quantitative Equity
    • Multi Asset
    • Sustainable Investing
  • Insights
    • About Us
    • The Team
    • Newsroom
    • Diversity, Equity & Inclusion
    • Careers
    • Contact Us
    • Client Log In
Linked Nodes
Research

Board Linkages: Finding Quality in Board QuantityBoardLinkages:FindingQualityinBoardQuantity

By Jyoti Singh — Sep 13, 2022

5 mins

Share
  • Mail
  • LinkedIn
  • Twitter
  • Copy URL
Read More

Share

Social networks have expanded the reach of our personal and professional relationships, leading us to develop connections and gain access to information that we otherwise may not have access to. We know the undeniable impact of social networks on individuals. But what’s perhaps less obvious is the importance and impact of social networks on corporate success. As with individuals, social networks embedded in the corporate setting, most notably among boards of directors, facilitate the exchange of ideas and increase the flow of information among and between corporate boards. Our research demonstrates that using this nonfinancial data to augment our quality factor can lead to improved returns for asset owners.

Social network theory studies and explains the relationship between entities or nodes within a network. Companies form an intricate web of connections through various social and professional networks that can include owners, sell-side analyst, customers, and suppliers. In this study, we focus on company networks through their boards of directors. The interconnectedness that facilitates the exchange of ideas and the flow of information between corporate boards, known as interlocked directorate or board linkages, is well documented in academic literature. We leverage this existing social network analysis and incorporate graph theory to analyze the effects of broadening networks among corporate boards.
 

Read More
  • By Jyoti SinghPrincipal, PGIM Quantitative Solutions
    • Solutions
    • Quantitative Equity
    • Multi Asset
    • Sustainable Investing
    • Insights
    • Browse By Topic
    • About Us
    • The Team
    • Newsroom
    • Careers
    • Contact Us
    • Client Log In
PGIM Quantitative Solutions Logo
  • Terms & Conditions
  • Privacy Center
  • Accessibility Help
  • Cookie Preference Center

For Professional Investors only. All investments involve risk, including the possible loss of capital.

PGIM Quantitative Solutions LLC (PGIM Quantitative Solutions or PGIM Quant), formerly known as QMA LLC, is an SEC-registered investment adviser and a wholly-owned subsidiary of PGIM, Inc. (PGIM) the principal asset management business of Prudential Financial, Inc. (PFI) of the United States of America. Registration with the SEC does not imply a certain level of skill or training. PFI of the United States is not affiliated in any manner with Prudential plc, which is headquartered in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.

The content and materials presented here are for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. 

In the United Kingdom, information is issued by PGIM Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 193418). In the European Economic Area (“EEA”), information is issued by PGIM Netherlands B.V. with registered office at Eduard van Beinumstraat 6 1077CZ, Amsterdam, The Netherlands. PGIM Netherlands B.V. is authorised by the Autoriteit Financiële Markten (“AFM”) in the Netherlands (Registration number 15003620) and operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Limited in reliance of provisions, exemptions or licenses available to PGIM Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Limited and/or PGIM Netherlands B.V. to persons who are professional clients as defined  under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II). PGIM Quantitative Solutions LLC, PGIM Limited and/or PGIM Netherlands B.V. are indirect, wholly-owned subsidiaries of PGIM, Inc. (“PGIM”).

In Canada, PGIM Quantitative Solutions LLC relies upon the “International Advisor Exemption” pursuant to National Instrument 31-103 in certain provinces of Canada.

In Australia, these materials are distributed by PGIM (Australia) Pty Ltd (“PGIM Australia”) for the general information of its “wholesale” customers (as defined in the Corporations Act 2001). PGIM Australia is a representative of PGIM Limited, which is exempt from the requirement to hold an Australian Financial Services License under the Australian Corporations Act 2001 in respect of financial services. PGIM Limited is exempt by virtue of its regulation by the Financial Conduct Authority (Reg: 193418) under the laws of the United Kingdom and the application of ASIC Class Order 03/1099. The laws of the United Kingdom differ from Australian laws. PGIM Limited’s registered office is Grand Buildings, 1-3 The Strand, Trafalgar Square, London, WC2N 5HR.

In Singapore, information is issued by PGIM (Singapore) Pte. Ltd. (“PGIM Singapore”), a regulated entity with the Monetary Authority of Singapore under a Capital Markets Services License to conduct fund management and an exempt financial adviser. This material is issued by PGIM Singapore for the general information of “institutional investors” pursuant to Section 304 of the Securities and Futures Act 2001 of Singapore (the “SFA”) and “accredited investors” and other relevant persons in accordance with the conditions specified in Section 305 of the SFA.

In Hong Kong, information is provided by PGIM (Hong Kong) Limited, a regulated entity with the Securities & Futures Commission in Hong Kong to professional investors as defined in Section 1 of Part 1 of Schedule 1 of the Securities and Futures Ordinance (Cap.571).

In Japan, the investment management capabilities and services described in the attached materials are offered by PGIM Japan Co., Ltd (PGIMJ), a Japanese registered investment adviser (Director-General of the Kanto Local Finance Bureau (FIBO) No. 392). Retention of PGIMJ for the actual provision of such investment advisory services may only be effected pursuant to the terms of an investment management contract executed directly between PGIMJ and the party desiring such services, It is anticipated that PGIMJ would delegate certain investment management services to its US-registered investment advisory affiliate.

In Korea, PGIM Quantitative Solutions LLC holds cross-border discretionary investment management and investment advisory licenses under the Korea Financial Investment Services and Capital Markets Act (“FSCMA”), and is registered in such capacities with the Financial Services Commission of Korea. These materials are intended solely for Qualified Professional Investors as defined under the FSCMA and should not be given or shown to any other persons.

PGIM, PGIM Quantitative Solutions logo and the Rock design are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

© 2025 PGIM Quantitative Solutions. All Rights Reserved.
 

PGIM Quantitative Solutions Logo
PGIM Quantitative Solutions Logo

You are viewing this page in preview mode.

Edit Page