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From Stakeholders to Shareholders. Corporate Governance Networks in The Netherlands 1976-1996

47 Pages Posted: 21 Aug 2003  

Eelke M. Heemskerk

University of Amsterdam / CORPNET

Robert J. Mokken

Informatics Institute; Faculty of Social and Behavioral Sciences

Meindert Fennema

University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR)

Date Written: 2003

Abstract

In this paper we analyse the networks of interlocking directorates among the 250 largest Dutch corporations in 1976 and 1996. In 1976 there was a relatively dense and centralised network in which the banks were the central hubs. Twenty years later the network had become much thinner and financials played a less prominent role in the network even though they remained important hubs. Overall the number of interlocks decreased well nigh 25%, the interlocks between finance and industry even with almost 40%. The number of multiple interlocks of the financial institutions with industry decreased substantially. Even though the Dutch network had become sparser, it remains compact and connected. Apparently the network did become more efficient as a communication network, while corporate control through personal interlocks has diminished. Thus a Rhineland type of industrial/financial business group system, still visible in 1976, had evolved by 1996 into a wider business community network of autonomous holdings. These changes could also indicate a shift towards a more shareholder-oriented regime of corporate governance.

Keywords: corporte governance, networks, Interlocking directorates, netherlands, directors, corporate community, business groups, rhineland, anglo-american

Suggested Citation

Heemskerk, Eelke M. and Mokken, Robert J. and Fennema, Meindert, From Stakeholders to Shareholders. Corporate Governance Networks in The Netherlands 1976-1996 (2003). Available at SSRN: https://ssrn.com/abstract=411580 or http://dx.doi.org/10.2139/ssrn.411580

Eelke M. Heemskerk (Contact Author)

University of Amsterdam / CORPNET ( email )

PO BOX 15578
Amsterdam, 1001NB
Netherlands
+31 (0)20 525 2628 (Phone)

HOME PAGE: http://www.eelkeheemskerk.nl

Robert J. Mokken

Informatics Institute ( email )

Science Park 904
Amsterdam, 1098 XH
Netherlands

HOME PAGE: http://staff.fnwi.uva.nl/r.j.mokken

Faculty of Social and Behavioral Sciences ( email )

REC BC Nieuwe Achtergracht 166
Amsterdam, 1018 TV
Netherlands

HOME PAGE: http://staff.fnwi.uva.nl/r.j.mokken

Meindert Fennema

University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR) ( email )

Kloveniersburgwal 48
Amsterdam 1012 CX
Netherlands

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