Interlocking Directorates' Influence On The Decision-making Mechanism Of Corporate Groups

The dissertation focuses on interlocking directorates' influence on the decision-making of corporate groups, taking the interlocking directorates as a key point. The first part emphasizes a research on interlocking directorates. The essence of the part is to do the research of interlocking directorates existence through comparative analysis of outside directors, independent directors, affiliated directors and interlocking directorates in practice.Analyzing the members of corporate groups based on determining boundary of corporate groups, the second part constructs a value network that it is driven by competency factors for the corporate groups, and it bases on theories of value network theory, corporate gene rebuilding theory and modularity theory.The decision-making mechanism of corporate groups is set up in the third part, and the aim of the mechanism is to enhance the ability of creating value basis of the value network to be constructed. It is analyzed that interlocking directorates' influence on decision-making of corporate groups is based on constructing and managing the value network.At last, the dissertation makes models to find the relationship between interlocking directorates with information network, as well as interlocking directorates' influence on stability of cooperation between parent corporations with linked corporations.The following are the conclusion from the researches above mentioned. The first conclusion is reason for interlocking directorates existing in so many companies. As viewed from the corporation, it is because of transaction cost, strategic choice, stakeholder benefits maximization and obtaining social capital. As viewed from the interlockingdirectorates, it is for benefits of the colony which they are in, as well as for themselves.The second conclusion is the method to constructing value network for corporate groups. The first step is to identify the core competence factors. The second is rebuilding the core competence factors, and then the modular organization is formed. And the value network is made of modular organizations.The third conclusion is that the ability to create value depends on the resource that is possessed by all members. Decision-making of corporate groups not only involves in the parent corporation constructing and managing to the subsidiary companies and share-holding companies, but involves in all of constructing and managing the value network as well. It is divided into five parts. The communication among modular organizations to be promoted, learning and absorbing ability of modular organization members to be enhanced, managing and controlling ability of core corporation to be promoted, dynamic management of modular organizations and the whole network to be managed well by parent corporation.The fourth conclusion is influence of interlocking directorates on the decision-making of corporate groups. Interlocking directorates have great effects on decision-making by taking part in M&A, accelerating knowledge transfer and communication, reducing probability of moral hazard, maintaining and improving the relationship between parent corporations and affiliated enterprises.The last conclusion is that interlocking directorates have positive effects on information network and cooperation stability between parent corporations and affiliated enterprises.