An extensive literature on the causes and consequences of corporate interlocks has developed since early studies in the 1960s. Some investigators suggest that within-industry interlocks are established in order to restrict competition in the market. Others propose that interlocks between financial institutions and business corporations perform a monitoring function by which the former control the profitability of their investments. Critics argue that the quantitative indicators used by most researchers fail to capture the complexity and dynamics of boardroom and inter-firm relations. For this reason it has proved difficult to establish convincing causal links between the structure of interlocking directorates and corporate behaviour in the market (see Mark Mizruchi , ‘What Do Interlocks Do? An Analysis, Critique, and Assessment of Research on Interlocking Directorates’, Annual Review of Sociology, 1996
). See also DECOMPOSITION OF CAPITAL.
"interlocking directorate." A Dictionary of Sociology. . Encyclopedia.com. (July 20, 2018). http://www.encyclopedia.com/social-sciences/dictionaries-thesauruses-pictures-and-press-releases/interlocking-directorate
"interlocking directorate." A Dictionary of Sociology. . Retrieved July 20, 2018 from Encyclopedia.com: http://www.encyclopedia.com/social-sciences/dictionaries-thesauruses-pictures-and-press-releases/interlocking-directorate
Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).
Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.
Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:
Modern Language Association
The Chicago Manual of Style
American Psychological Association
- Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
- In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.
The relationship that exists between the board of directors of one corporation with that of another due to the fact that a number of members sit on both boards and, therefore, there is a substantial likelihood that neither corporation acts independently of the other.
Because the same persons occupy seats on the boards of companies that are supposed to compete in the marketplace, there is a potential for violations of federal antitrust acts, particularly the clayton act (15 U.S.C.A. §§ 12-27 ) which prohibits the existence of inter-locking directorates that substantially reduce commercial competition.
"Interlocking Directorate." West's Encyclopedia of American Law. . Encyclopedia.com. (July 20, 2018). http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/interlocking-directorate
"Interlocking Directorate." West's Encyclopedia of American Law. . Retrieved July 20, 2018 from Encyclopedia.com: http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/interlocking-directorate