By M. Fennema (auth.)
Research into interlocking directorates and different organizational ties among huge agencies dates again to the start of the century. In Germany and the USA interlocking directorates turned an immense technique of coordination and keep watch over of huge companies and banks on the finish of the 19th century and have been, for this reason, rather topic to clinical research and public debate. Trusts have been seemed with distrust, in particular within the usa, the place John Moody's learn from 1904 was once considerably entitled the reality approximately Trusts. In Germany a lot consciousness was once paid to the role-or-the huge Berlin banks within the fiscal improvement. the 1st huge examine in Germany carried the prolix name the connection among the massive German Banks and with targeted connection with the Iron (Jeidels, 1905). ---- --------- The stories within the usa have been predominantly triggered or even performed via committees of the Federal Congress. In Europe, nevertheless, the exertions stream quickly took an interest within the styles of interlocking directorates. within the Netherlands, for instance, Wibaut, a socialist chief, conducted a research on interlocking directorates, copying the study layout of Jeidels. for that reason, diversified colleges might be extraordinary from the beginning: the Marxian institution which built the idea that of finance capital to provide an explanation for the present interlocking directorates, and the institutional economists who used the concept that of financial strength to give an explanation for an identical phenomenon.
Read or Download International Networks of Banks and Industry PDF
Similar banks & banking books
Reforming the World Bank: Twenty Years of Trial - and Error
Within the many reviews of the area financial institution a severe factor has been neglected. whereas writers have checked out the Bank's political economic climate, lending, stipulations, suggestion, possession and accounting for concerns equivalent to the surroundings, this learn appears to be like on the financial institution as a firm - if it is organize to do the task it's speculated to do and, if no longer, what may be performed approximately it.
The Art of Better Retail Banking: Supportable Predictions on the Future of Retail Banking
"This new ebook on retail banking is either readable and cutting edge. Its research is surprisingly available in its variety, and the book's conclusions and predictions may be rightly idea scary. the client is gaining genuine strength and this new book's insights at the significance of management, the necessity to unharness creativity and to make a bank's IT and other people source interact extra successfully for consumer delight are vital tips that could the form of destiny aggressive differentiation.
Financial Crisis and Bank Management in Japan (1997 to 2016): Building a Stable Banking System
This booklet explores the demanding situations confronted by way of the japanese economic system and the japanese banking following the monetary problem that emerged round the flip of the final millennium. the writer explores how the japanese monetary hindrance of the past due Nineteen Nineties engendered large restructuring efforts within the banking undefined, which ultimately resulted in much more sweeping alterations of the industrial method and long term deflation within the 2000s.
Additional info for International Networks of Banks and Industry
Example text
In Dooley's study, however, although a group is solely defined by interlocking directorates, the operationalization of the concept is somewhat hazy. Since the study of Dooley (1969) more sophisticated attempts have been made to analyze the network of interlocking directorates in the United States in terms of groups. Sonquist and Koenig (1975) used an application of graph theory to search for clusters, defined as a set of corporations all of which are linked to one another in such ways that the number of interlocks in the set is high, while the number of interlocks with firms outside the set is low.
Here, however, the coordination between the two indirectly linked companies may also be of a competitive nature, as we will argue in Chapter 2. Furthermore, the FTC report pOints to the possible business coordination through persons who are not directors, but nevertheless represent the interest of a company, such as large stockholders or officers who are not member of the board of directors of the company they represent. Finally kinship ties may be as important corporate interlocks as interlocking directorates.
And since the marginal productivity of each 'bit of investment' cannot be measured, the investors are rewarded according to the total output of the team production in proportion to the share they have had in the initial investment. However, this 'sharing system' makes information about and control over the total investment very costly for the individual investor. These costs are reduced by transferring decision authority to a smaller group (the board of directors) who is to 'represent' the investors vis-a-vis [3] Colonial enterprises like the Netherlands-chartered East India Company were also organized as joint-stock companies and are often regarded as the first modern corporations (see De Jong, 1979: 21).