ARTICLE
TITLE

Interlocking Corporate Directorates and the Global City Hierarchy

SUMMARY

This paper examines the direct and indirect economic linkages of the most prominent cities in the world, those commonly referred to as global cities, in terms of the direct and indirect linkages of the boards of directors of Fortune Global 500 firms headquartered in a given city with boards of directors of other firms. Specifically, we identify the interlocks of corporate boards located within these major cities with other Fortune 500 boards of directors by degrees of separation, and present a new ranking for selected global cities based upon these direct and indirect ties. We find that New York clearly dominates these economic linkages, followed by London and Paris. This is most pronounced for financial companies. Contrary to other global city rankings, we locate Tokyo below Frankfurt and Chicago on this dimension. We argue that these multiple levels of indirect relationships reflect a significant, and until now unexplored, dimension of what it means to be a global city.

 Articles related

Miguel Ignacio Córdova    

Firms create a formal mechanism of governance to avoid agency problems: the board of directors. At the same time, unintended informal networks emerge from those efforts that build corporate ties among firms through shared directors called interlocking di... see more

Revista: RAN

Wesley Mendes-da-Silva    

Social Network Analysis (SNA) is an emerging research field in finance, above all in Brazil. This work is pioneering in that it is supported by reference to different areas of knowledge: social network analysis and corporate governance, for dealing with ... see more


Miguel Ignacio Córdova    

Directors’ corporate networks have been the subject of several studies that explore their different consequences, such as resource collaboration, transmission of practices, financial decisions, reduction of uncertainty, control and management, the firm’s... see more

Revista: AD-minister

Rafael Liza Santos,Alexandre Di Miceli da Silveira    

This paper investigates the simultaneous participation of directors in different companies from 320 Brazilian listed firms in 2003 and 2005. We identify which firms are connected through a network of directors, which corporate characteristics contribute ... see more


Genevieve Scalan    

The Moscow Exchange in conjunction with the Organization for Economic Cooperation and Development (OECD) continues to address improvements in Russian corporate governance by conducting annual roundtables (OECD, 2017).  My research relates to corpora... see more