Managers' Social Capital and Financial Performance of Banks

Given the present era, the major share of resources attraction and allocation in the banks occurs in connection with society. As such, managers need social capital as well as physical and human capital in order to attain organizational goals, provide the ground for competition and pave the way for the development of their respective organization. Managerial social capital is an asset in a social network that can be accessed and mobilized through network membership. As such, the main objective of this research is to examine the impact of the manager's social capital on financial performance of banks. The research hypotheses are tested using the statistical method of regression analysis with synthetic data on 30 banks of the I. R. Iran. Included on stock exchanges and other, in 2009-2018 Conclusively, 265 data-years are extracted to test the hypotheses. The findings of the research show that social capital has a positive and significant impact on financial performance criteria, including the average return on assets, the ratio of other operating income to total bank assets and net operational profit.