Models of the Significance of Interlocking Corporate Directorates

Abstract

A bstract . Four different models explaining the significance of the patterns of interlocking directorates in the American economy are delineated and examined to discover a few of the behavioral predictions inherent in each. Empirical tests are employed to examine the general pattern of replacement of interlocking relationships between the largest American firms when ended through the death of an outside director. Another test employed is to examine the stability of interlock patterns over time. From the results it is concluded that interlocking directorates do not generally represent evidence of close interconnections between specific corporations but do connect some stable, city‐based groups.