Bank Control of Large Corporations in the United States

by David M. Kotz

Overview

"Truly a distinguished piece of work, based on new data that had not been analyzed before. There is an excellent combination of historical perspective, conscientious examination of a great mass of data, and penetrating analysis." 
—Robert Aaron Gordon, Charter Member of the Brookings Panel on Economic Activity
 
"Contends that since the Second World War, a small number of 'giant, well-established' banks in a few major cities have re-emerged as the major group that controls large corporations. Places the financial control thesis in historical perspective from the Civil War to the present and then examines the control of the two hundred largest U.S. corporations in 1967-69 in terms of owner control, financial control, and no identified center of control. Also comments on the means of exercising control. ... the author finds that a substantial portion of the largest nonfinancial corporations in 1967-69 were under the control of financial institutions; the control is exercised through the ownership of stock and the role of the bankers as creditors of the corporations."
—Journal of Economic Literature
 
"Recent empirical evidence, made available through congressional hearings, reveals that large banking groups are exercising substantial influence over nonfinancial corporations. This is accomplished through stockholdings, creditor relationships, and directorship ties. In this excellent historical statistical analysis, Katz assesses the extent and impact of such control in a competitive economy." 
—Library Journal
 

Product Details

ISBN-13:	9780520039377
Publisher:	University of California Press
Publication date:	05/09/1980
Edition description:	First Edition
Pages:	232
Product dimensions:	5.50(w) x 8.50(h) x 0.60(d)

About the Author

David M. Kotz is Professor of Economics, University of Massachusetts Amherst and Distinguished Professor of Economics, Shanghai University of Finance and Economics

Table of Contents

	List of Tables	vii
	Preface	ix
1.	The Problem of Corporate Control	1
	The Managerial Thesis	2
	Owner Control	6
	Financial Control	8
2.	The Meaning of Control	14
	Control Distinguished from Managing	16
	The Basis of Control	18
3.	The Evolution of Financial Control Over Large Corporations Since 1865	23
	The Rise of Banker Control: 1865-1914	24
	War, Prosperity, and Banker Power: 1915-1929	41
	Decline of Banker Power: 1930-1945	51
	Resurgence: 1946-1974	60
4.	The Extent of Financial Control Over the 200 Largest Nonfinancial Corporations, 1967-1969	72
	The Sample of 200 Corporations	72
	Control Categories	75
	Rationale for the Working Definitions	79
	Groups of Financial Institutions	84
	Data Sources	89
	Problems in Applying the Working Definitions	93
	Overall Results	96
	Results by Assets and Size Group	101
	Results by Sector	105
	Types of Financial Institutions	108
	The Most Powerful Financial Institutions	110
	Financial Control and Owner Control	113
	Comparison of Larner's Results to These Results	116
5.	The Exercise of Financial Control and Its Significance	119
	The Means of Exercising Financial Control	120
	The Implications of Financial Control for Market Behavior	130
	The Economic and Social Significance of Financial Control	140
	Appendices
A.	The Sample of 200 Corporations	151
B.	Classification of the 200 Largest Nonfinancial Corporations by Type of Control, 1967-1969	157
C.	Financial and Owner Control Among Industrial Companies, by Industry	192
D.	Companies Controlled by Groups of Financial Institutions	196
	Selected Bibliography	201
	Index	207