Italian interlocking directorates: structure, evolution and cross-country comparisons

Abstract

Interlocking directorates have historically represented an important characteristic of the Italian corporate network. Pyramidal groups and low developed capital markets have fostered this phenomenon. Nevertheless, the Italian interlocking directorates have registered earlier erosion than in other countries. Analyzing the ties between the 250 largest Italian firms, this work reveals that the major forces shaping the structure of the Italian interlocking directorates are the long-term commitment of banks in financing private companies, the level of shareholder protection and the role of the state in the economy. Cross-country comparisons sustain the first two results, while the effects of state intervention remain ambiguous.