A Longitudinal Study of Borrowing by Large American Corporations

Mizruchi, Mark S.; Stearns, Linda Brewster

doi:10.2307/2393496

Cited by 232 publications

(161 citation statements)

References 48 publications

Supporting

Mentioning

152

Contrasting

Unclassified

Order By: Relevance

“…Here we mention four well-known views. The first is that interlocks are a way for firms to coopt and/or monitor each other (Dooley, 1969 andMizruchi andStearns, 1994). The second view states that interlocks provide firms with information on business practice (Davis, 1991).…”

Section: Introductionmentioning

confidence: 99%

Interlocking Boards and Firm Performance: Evidence from a New Panel Database

Non

Franses

2007

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract An interlock between two firms occurs if the firms share one or more directors in their boards of directors. We explore the effect of interlocks on firm performance for 101 large Dutch firms using a large and new panel database. We use five different performance measures, and for each performance measure we design three different panel data models, where we allow the effect of the number of interlocks to be linear, quadratic or square root, either with or without lags. Terms of use: Documents inBased on all results we conclude that current interlocks can have a negative effect on future firm performance. We show that this negative effect is jointly established by (1) interlocking directors being too busy and (2) by directors being members of a homogenous upper class group.

show abstract

Section: Introductionmentioning

confidence: 99%

Interlocking Boards and Firm Performance: Evidence from a New Panel Database

Non

Franses

2007

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…cess and costs in ways that are inadequately incorporated into financial theory (Baker 1990;Mintz and Schwartz 1985;Mizruchi and Stearns 1994b;Podolny 1993;Uzzi and Gillespie 1999). Bankers and entrepreneurs echo this observation and complain that financial models often do not appreciate the value of bank-client relationships.…”

mentioning

confidence: 99%

“…Bankers and entrepreneurs echo this observation and complain that financial models often do not appreciate the value of bank-client relationships. This suggests that there is a growing demand for sociological theory on finance (Abolafia 1997;Arrow 1998;Haunschild 1994;Mizruchi and Stearns 1994b).…”

mentioning

confidence: 99%

“…Rather, classical writings take a philosophical approach to analyzing money economies, and most contemporary work concentrates on how bank-firm ties, coarsely defined as the incidence of a director interlock, affect the politics and level of a firm's borrowing (Baker 1990;Mintz and Schwartz 1985;Mizruchi and Stearns 1994a). These approaches, while productive for certain problems, leave unexplored how the embeddedness of commercial transactions in social hich firms get capital and at what cost?…”

mentioning

confidence: 99%

See 1 more Smart Citation

Embeddedness in the Making of Financial Capital: How Social Relations and Networks Benefit Firms Seeking Financing

Uzzi

1999

American Sociological Review

1,480

1,164

View full text Add to dashboard Cite

“…On the one hand, a growth strategy may lead to the policy that a large portion of earnings is going to be used to finance the growth and the family, therefore, foregoes receiving dividends or pay-outs (Adams et al 2004). On the other hand, a growth strategy may also be accompanied by higher leverage (Mizruchi and Stearns 1994). As earnings are usually volatile and not a secure, long term source of financing, a growth strategy usually can not solely rely on the use of retained earnings and often requires additional debt financing (Kotey 1999).…”

Section: Family Specific Goalsmentioning

confidence: 99%

Influence of Internal Factors on the Use of Equity-and Mezzanine-Based Financing in Family Firms

Achleitner¹,

Lutz²,

Schraml³

2012

Oxford Handbooks Online

View full text Add to dashboard Cite

Suggested Citation: Achleitner, Ann-Kristin; Lutz, Eva; Schraml, Stephanie (2009) : Influence of internal factors on the use of equity-and mezzanine-based financing in family firms, CEFS working paper series, No. 2009-14, Center for Entrepreneurial and Financial Studies (CEFS) EQUITY-AND MEZZANINE-BASED FINANCING IN FAMILY FIRMS AbstractThe paper analyzes internal factors which influence the use of equity-and mezzaninebased financing instruments in German privately held family firms. Based on a sample of 195 surveys of family firms, we investigate the impact of family specific goals and corporate governance structures on the use of financial instruments such as retained earnings, private equity and silent partnerships. We find that family goals have a complex impact on the decision to use or not to use these instruments and parallel existing goals can result in diverging financing preferences. Furthermore, we find that the impact of corporate governance structures on financing decisions is mainly driven by the existence of an advisory board and the involvement of external managers in the management board.Our findings contribute to a better understanding of financing decisions in family firms and demonstrate the necessity to include family firm specific characteristics such as family goals and corporate governance structures in the analysis of financing decisions

show abstract

A Longitudinal Study of Borrowing by Large American Corporations

Cited by 232 publications

References 48 publications

Interlocking Boards and Firm Performance: Evidence from a New Panel Database

Interlocking Boards and Firm Performance: Evidence from a New Panel Database

Embeddedness in the Making of Financial Capital: How Social Relations and Networks Benefit Firms Seeking Financing

Influence of Internal Factors on the Use of Equity-and Mezzanine-Based Financing in Family Firms

Contact Info

Product

Resources

About