Interlocking directorates, access to credit, and business performance in Chile during early industrialization

Matías Braun*, Ignacio Briones, Gonzalo Islas

*Autor correspondiente de este trabajo

Producción científica: Contribución a una revistaArtículorevisión exhaustiva

27 Citas (Scopus)


How do businessmen counteract credit constraints when the financial market does not provide adequate external financing? Based on novel primary corporate data, network techniques and regression analysis, we explore the role of interlocking directorates with banks as a way for companies to face this limitation in early twentieth century Chile. Since both linkages and credit were unregulated, this setting provides us with a quasi-natural laboratory to test the role of interlocking directorates as a device for dealing with credit constraints. The paper finds that firms connected to banks had better access to credit as reflected in higher leverage ratios, had higher valuations, and better chances of surviving. These facts show that business networks, through interlocking directorates, can play a valuable role for companies in dealing with an environment of financial constraints.

Idioma originalInglés
Páginas (desde-hasta)381-388
Número de páginas8
PublicaciónJournal of Business Research
EstadoPublicada - dic. 2019
Publicado de forma externa

Nota bibliográfica

Publisher Copyright:
© 2017 Elsevier Inc.


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