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.
Available at: http://works.bepress.com/julie_caswell/51/