Premium
Dominant Forms of Corporate Control in the U.S. Agribusiness Sector
Author(s) -
Caswell Julie A.
Publication year - 1987
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241301
Subject(s) - control (management) , agribusiness , discretion , business , limit (mathematics) , economics , management , mathematics , biology , agriculture , ecology , mathematical analysis , political science , law
Two forms of control over corporate decision making are analyzed: direct control through stockholding and network control through interlocking boards of directors. A majority of the 222 large agribusiness firms studied had strong direct control by owners or cooperatives, while the largest firms lacked such control. Tests relating direct control type to level of network control exposure show that strong direct control is associated with weak network control and vice versa, with firm size being the major factor in explaining both types of control. For the largest firms, network‐based rather than direct control appears to limit management discretion.