Published online by Cambridge University Press: 12 September 2008
2 O'Sullivan, M., Innovation, industrial development, and corporate governance, Ph.D. thesis (Harvard University, 1996)Google Scholar; and Lazonick, W. and O'Sullivan, M., ‘Organization, finance, and international competition’, Industrial and Corporate Change, 5 (1996).CrossRefGoogle Scholar
3 O'Sullivan, Innovation.
4 ibid.; Lazonick, W., ‘Controlling the market for corporate control’, Industrial and Corporate Change, 1 (1992).CrossRefGoogle Scholar
5 See Lazonick, W. and O'Sullivan, M., ‘Big business and skill formation in the wealthiest nations: the organizational revolution in the twentieth century’, in Amatori, F., Chandler, A. D. Jr. and Hikino, T. (eds), Big Business and the Wealth of Nations (Cambridge, Mass., 1996)Google Scholar; Lazonick and O'Sullivan, ‘Organization’; O'Sullivan, Innovation, chs 5–6; and Lazonick, W., Business Organization and the Myth of the Market Economy (Cambridge, 1990), chs 1–3.Google Scholar
6 ‘Firms Ponder How Best to Use Their Cash’, Wall Street Journal, 16 Oct. 1995, pp. A1, A9.Google Scholar
7 W. Lazonick and M. O'Sullivan, ‘Corporate employment and corporate governance: is prosperity sustainable in the United States?’, Report to the Jerome Levy Economics Institute (Oct. 1996).
8 Navin, T. and Sears, M., ‘Rise of a market in industrial securities’, Business History Review, 29 (1955)Google Scholar; and Chandler, A. D. Jr, The Visible Hand: The Managerial Revolution in American Business (Cambridge, Mass., 1977).Google Scholar
9 Navin, and Sears, , ‘Rise of a market’, p. 108.Google Scholar
10 Nelson, R. L., Merger Movements in American Industry, 1895–1956 (Princeton, NJ, 1959), p. 94.Google Scholar
11 Flynn, J. T., Security Speculation: Its Economic Effects (New York, 1934), p. 140.Google Scholar
12 Means, G. C., ‘The diffusion of stock ownership in the United States’, Quarterly Journal of Economics, 44 (1930).CrossRefGoogle Scholar
13 Carosso, V. P., Investment Banking in America (Cambridge, Mass., 1970), p. 250Google Scholar; and United States Bureau of the Census, Historical Statistics of the United States (Washington, DC, 1976), pp. 1005–6.Google Scholar
14 Means, , ‘Diffusion of stock ownership’, p. 568.Google Scholar
15 ibid.
16 Carosso, Investment Banking, ch. 14.
17 Dewing, A. S., A Study of Corporation Securities, and Their Nature and Uses in Finance (New York, 1934), p. 98.Google Scholar
18 Berle, A. A. and Means, G. C., The Modern Corporation and Private Property (New York, 1932), p. 56.Google Scholar
19 US Bureau of the Census, Historical Statistics, p. 1006.Google Scholar
20 Sears, J. H., The New Place of the Stockholder (New York, 1929), pp. 90–1.Google Scholar
21 Horwitz, M., The Transformation of American Law, 1780–1860 (Cambridge, Mass., 1977)Google Scholar; idem, The Transformation of American Law: The Crisis of Legal Orthodoxy, 1870–1960 (New York, 1992)Google Scholar; and Sklar, M. J., The Corporate Reconstruction of America, 1890–1916: The Market, the Law and Politics (Cambridge, 1988).CrossRefGoogle Scholar
22 Hurst, J. W., The Legitimacy of the Business Corporation in the Law of the United States, 1780–1970 (Charlottesville, Va, 1970).Google Scholar
23 Stevens, ‘Stockholders' voting’.
24 Hurst, Legitimacy; and see also Michie, R., The London and New York Stock Exchanges, 1850–1914 (London, 1987).Google Scholar
25 Belkaoui, A., Industrial Bonds and the Rating Process (Westport, Conn., 1983), pp. 10–11.Google Scholar
26 Koch, A. R., The Financing of Large Corporations, 1920–39 (New York, 1943).Google Scholar
27 ibid., ch. 6.
28 ibid., p. 81
29 See Hall, B. H., ‘Corporate restructuring and investment horizons in the United States, 1976–1987’, Business History Review, 68 (1994), p. 139.CrossRefGoogle Scholar
30 Lorsch, J., with Maclver, E., Pawns or Potentates: Tfie Reality of America's Corporate Boards (Boston, Mass., 1989).Google Scholar
31 For example, Roe, M., Strong Managers, Weak Owners (Princeton, NJ, 1994).Google Scholar
32 O'Sullivan, Innovation, ch. 4.
33 US Bureau of the Census, Historical Statistics, p. 914.Google Scholar
34 Mowery, D., ‘Industrial research, 1900–1950’, in Elbaum, B. and Lazonick, W. (eds), The Decline of the British Economy (Oxford, 1986), pp. 191–2.Google Scholar
35 Hay, G. and Untiet, C., ‘Statistical measurement of the conglomerate problem’, in Blair, R. D. and Lanzillotti, R. F. (eds), The Conglomerate Corporation: An Antitrust Law and Economics Symposium (Cambridge, Mass., 1981), p. 165.Google Scholar
36 Chandler, A. D. Jr, Strategy and Structure: Chapters in the History of the Industrial Enterprise (Cambridge, Mass., 1962).Google Scholar
37 O'Sullivan, Innovation, ch. 5.
38 Ravenscraft, D. and Scherer, F. M., Mergers, Sell-Offs, and Economic Efficiency (Washington, DC, 1987), pp. 30, 32, 38, 39.Google Scholar
39 See Holland, M., When the Machine Stopped: A Cautionary Tale from Industrial America (Boston, Mass., 1984)Google Scholar; and also Lazonick, W. and West, J., ‘Organizational integration and competitive advantage: explaining strategy and performance in American industry’, Industrial and Corporate Change, 4 (1995), pp. 261–4.CrossRefGoogle Scholar
40 Chandler, A. D. Jr, Scale and Scope: The Dynamics of Industrial Capitalism (Cambridge, Mass., 1990), p. 624.Google Scholar
41 Editors, Fortune: The Conglomerate Commotion (New York, 1970).Google Scholar
42 US Bureau of the Census, Historical Statistics, p. 928.Google Scholar
43 Ravenscraft, and Scherer, , Mergers, p. 190.Google Scholar
44 Merrill Lynch Advisory Services, Mergerstat Review (New York, 1994), p. 120.Google Scholar
45 Taggart, R. A. Jr, ‘The growth of the “junk” bond market and its role in financing takeovers’, in Auerbach, A. J. (ed.), Mergers and Acquisitions (Chicago, 1988), p. 9Google Scholar; and Bruck, C., The Predators' Ball: The Junk-Bond Raiders and the Man Who Staked Them (New York, 1988), pp. 27, 37–8, 44.Google Scholar
46 ibid., ch. 1.
47 Taggart, , ‘Growth of the “junk” bond market’, p. 9.Google Scholar
48 ibid., p. 8; Bruck, Predators' Ball; and Stewart, J. B., Den of Thieves (New York, 1991).Google Scholar
49 Perry, K. J. and Taggart, R. A. Jr, ‘Development of the junk bond market and its role in portfolio management and corporate finance’, in Altman, E. I. (ed.), The High-Yield Debt Market: Investment, Performance, and Economic Impact (Homewood, Ill. 1990), p. 187.Google Scholar
50 Holland, When the Machine Stopped.
51 Lichtenberg, F. and Siegel, D., ‘The effects of leveraged buyouts on productivity and related aspects of firm behavior’, Journal of Financial Economics, 27 (1990); and Hall, ‘Corporate restructuring’.CrossRefGoogle Scholar
52 Joseph, F. H., ‘A Wall Street view of the high-yield debt market and corporate leverage’, in Altman, High-Yield Debt Market, pp. 123–4.Google Scholar
53 Jensen, M. C., ‘The eclipse of the public corporation’, Harvard Business Review, 67 (1989), p. 65Google Scholar; and Merrill Lynch Advisory Services, Mergerstat Review, p. 95.Google Scholar
54 Jensen, ‘Eclipse of the public corporation’; and idem, ‘The agency cost of free cash flow, corporate finance, and takeovers’, American Economic Review, 76 (1986)Google Scholar. See also Burrough, B. and Helyar, J., Barbarians at the Gate (New York, 1990)Google Scholar; Anders, G., Merchants of Debt: KKR and the Mortgaging of American Business (New York, 1992)Google Scholar; Johnston, M., Takeover: The New Wall Street Warriors (New York, 1986); Stewart, Den of Thieves; and Bruck, Predators’ Ball.Google Scholar
55 Shleifer, A. and Summers, L. H., ‘Breach of trust in hostile takeovers’, in Auerbach, A. J. (ed.), Corporate Takeovers: Causes and Consequences (Chicago, 1988).Google Scholar
56 E. Wyatt, ‘Money keeps pouring into market funds’, New York Times, 7 Mar. 1996.
57 United States Congress, Economic Report of the President, 1996 (Washington, DC, 1996), pp. 343, 360.Google Scholar
58 Ghilarducci, T., Labor's Capital: The Economics and Politics of Private Pensions (Cambridge, Mass., 1992), p. 3.Google Scholar
59 Editors, Fortune: Conglomerate, p. 142.Google Scholar
60 Vietor, R. H. K., ‘Regulation-defined financial markets: fragmentation and integration in financial services’, in Hayes, S. L. III (ed.), Wall Street and Regulation (Boston, Mass., 1987), pp. 42–5Google Scholar; Auletta, K., Greed and Glory on Wall Street (New York, 1986)Google Scholar; and Carrington, T., The Year They Sold Wall Street (Boston, Mass., 1985).Google Scholar
61 See, for example, Blair, M., Ownership and Control: Rethinking Corporate Governance for the Twenty-First Century (Washington, DC, 1995), ch. 5.Google Scholar
62 See Church, R., ‘The family firm in industrial capitalism: international perspectives on hypotheses and history’, Business History, 35 (1993).CrossRefGoogle Scholar
63 Elbaum, and Lazonick, , Decline of the British Economy.Google Scholar
64 Burgess, K., The Origins of British Industrial Relations (London, 1975)Google Scholar; Hobsbawm, E., Workers: Worlds of Labor (New York, 1984)Google Scholar; Elbaum, and Lazonick, , Decline of the British EconomyGoogle Scholar; Harrison, R. and Zeitlin, J. (eds), Divisions of Labour: Skilled Workers and Technological Change in Nineteenth Century England (Brighton, 1985)Google Scholar; and Lazonick, W., Competitive Advantage on the Shop Floor (Cambridge, Mass., 1990).Google Scholar
65 Noble, D., America by Design (New York, 1977).Google Scholar
66 Ferleger, L. and Lazonick, W., ‘The managerial revolution and the developmental state: the case of US agriculture’, Business and Economic History, 2nd ser., 22 (1993)Google Scholar; and idem, ‘Higher education for innovation: land-grant colleges and the managerial revolution’, Business and Economic History, 2nd ser., 23 (1994).Google Scholar
67 See Lazonick, W., ‘Strategy, structure, and management development in the United States and Britain’, in Kobayashi, K. and Morikawa, M. (eds), Development of Managerial Enterprise (Tokyo, 1986).Google Scholar
68 Reader, W., Imperial Chemical Industries, 2 vols (Oxford, 1970 and 1975)Google Scholar; and Wilson, C., The History of Unilever (Cambridge, 1968).Google Scholar
69 Rubenstein, W. D., ‘Wealth, elites, and the class structure of modern Britain’, Past and Present, 76 (1977)Google Scholar; idem, ‘The Victorian middle classes: wealth, occupation, and geography’, Economic History Review, 2nd ser., 30 (1977)Google Scholar; Cassis, Y., ‘Bankers in English society in the late nineteenth century’, Economic History Review, 2nd ser., 38 (1985)CrossRefGoogle Scholar; Daunton, M., ‘“Gentlemanly capitalism” and British industry, 1820–1914’, Past and Present, 122 (1989)CrossRefGoogle Scholar; and idem, ‘Financial elites and British society, 1880–1950’, in Cassis, Y. (ed.), Finance and Financiers in European History, 1880–1960 (Cambridge, 1992).Google Scholar
70 Lazonick, , ‘Strategy, structure and management development’, pp. 119–34.Google Scholar
71 Rubenstein, , ‘Victorian middle classes’Google Scholar; and Jeremy, D. J., ‘Anatomy of the British business elite, 1860–1980’, Business History, 26 (1984).CrossRefGoogle Scholar
72 Coleman, D. C., ‘Gentlemen and players,’ Economic History Review, 2nd ser., 26 (1973).CrossRefGoogle Scholar
73 Cambridge University Appointments Board, University Education and Business (Cambridge, 1945), pp. 39–40Google Scholar; and Acton Society Trust, Management Succession (London, 1956), pp. 28–9.Google Scholar
74 Sanderson, M., ‘The English civic universities and the “industrial spirit”, 1870–1914’, Historical Research, 61 (1988).CrossRefGoogle Scholar
75 Lazonick, , ‘Strategy, structure, and management development’, pp. 119–34.Google Scholar
76 Edelstein, M., Overseas Investment in the Age of High Imperialism, 1850–1914 (New York, 1982)Google Scholar; Chapman, S., The Rise of Merchant Banking (London, 1984)Google Scholar; Pollard, S., ‘Capital exports: harmful or beneficial’, Economic History Review, 38 (1985)Google Scholar; Daunton, , ‘“Gentlemanly capitalism” and British industry’Google Scholar; Thomas, W. A., The Finance of British Industry, 1918–1976 (London, 1978), p. 48Google Scholar; and Cottrell, P. L., Industrial Finance, 1830–1914: The Finance and Organization of English Manufacturing Industry (London, 1980), pp. 181–2.Google Scholar
77 Thomas, , Finance of British Industry, chs 3 and 7Google Scholar; Best, M. and Humphries, J., ‘The City and industrial decline’, in Elbaum and Lazonick, Decline of the British EconomyGoogle Scholar; and Cassis, Y., ‘British finance: success and controversy’, in Van Helten, J. J. and Cassis, Y. (eds), Capitalism in a Mature Economy: Financial Institutions, Capital Exports, and British Industry, 1870–1939 (Aldershot, 1990).Google Scholar
78 Michie, , London and New York Stock Exchanges.Google Scholar
79 Jefferys, J. B., Business Organisation in Great Britain, 1856–1914 (New York, 1977), p. 371Google Scholar; and see also Cottrell, , Industrial Finance, ch. 5.Google Scholar
80 Harrison, A. E., ‘Joint-stock company flotation in the cycle, motor vehicle and related industries, 1882–1914’, Business History, 23 (1981)CrossRefGoogle Scholar; and Michie, R. C., ‘The Stock Exchange and the British economy, 1870–1939,’Google Scholar; in Van Helten, and Cassis, , Capitalism in a Mature Economy.Google Scholar
81 Thomas, , Finance of British Industry, ch. 2.Google Scholar
82 Michie, , London and New York Stock ExchangesGoogle Scholar; and Cottrell, , Industrial Finance, pp. 184–90.Google Scholar
83 Cottrell, , Industrial Finance, ch. 7Google Scholar; Thomas, , Finance of British Industry, ch. 7Google Scholar; Ross, D. M., ‘The clearing banks and industry – new perspectives on the inter-war years,’Google Scholar in Van Helten, and Cassis, , Capitalism in a Mature EconomyGoogle Scholar; and see also Harrison, A. E., ‘F. Hopper & Co.: the problems of capital supply in the cycle manufacturing industry, 1891–1914’, Business History, 24 (1982).CrossRefGoogle Scholar
84 Ross, , ‘Clearing banks’Google Scholar; and Collins, M., Banks and Industrial Finance in Britain, 1800–1939 (Cambridge, 1995), ch. 6.Google Scholar
85 Tolliday, S., ‘Steel and rationalization policies, 1918–1950’Google Scholar, in Elbaum, and Lazonick, , Decline of the British EconomyGoogle Scholar; Bamberg, H., ‘The rationalisation of the British cotton industry in the interwar years’, Textile History, 19 (1988).CrossRefGoogle Scholar
86 Hannah, L., The Rise of the Corporate Economy (Baltimore, 2nd ed., 1983), ch. 3.Google Scholar
87 ibid., p. 93.
88 Chandler, A. D. Jr, ‘The growth of the transnational industrial firm in the United States and the United Kingdom: a comparative analysis’, Economic History Review, 2nd ser., 33 (1980)CrossRefGoogle Scholar; and Hannah, , Rise of the Corporate Economy, ch. 7.Google Scholar
89 Thomas, , Finance of British Industry, ch. 6.Google Scholar
90 Singh, A., ‘Take-overs, economic natural selection and the theory of the firm: evidence from the postwar United Kingdom experience’, Economic Joumal, 85 (1975), p. 499.Google Scholar
91 ibid.; and Chandler, , Scale and Scope, ch. 9.Google Scholar
92 See Hannah, L., ‘Takeover bids in Britain before 1950: an exercise in business “pre-history”’, Business History, 15 (1974)Google Scholar; Wright, J. F., ‘The capital market and the finance of industry’, in Worswick, G. D. N. and Ady, P. H. (eds), The British Economy in the Nineteen-Fifties (Oxford, 1962)Google Scholar; and Singh, , ‘Take-Overs’.Google Scholar
93 Thomas, , Finance of British Industry, pp. 236, 240–1.Google Scholar
94 Hannah, L., Inventing Retirement: The Development of Occupational Pensions in Britain (Cambridge, 1986), ch. 5.CrossRefGoogle Scholar
95 Ghilarducci, T., ‘International pension funds and capital markets’, photocopy (AFL-CIO, Washington, DC, 1994).Google Scholar
96 Charkham, J., Keeping Good Company: A Study of Corporate Governance in Five Countries (Oxford, 1994), ch. 6.Google Scholar
97 Jensen, , ‘Eclipse of public corporation’.Google Scholar
98 Crystal, G., In Search of Excess: The Overcompensation of American Executives (New York, 1991).Google Scholar
99 Lazonick, , ‘Controlling the market’, pp. 461–6.Google Scholar
100 O'Sullivan, , Innovation, ch.7.Google Scholar
101 Reich, R. B., ‘How to avoid these layoffs?’, New York Times, 4 01 1996, A13Google Scholar; and ‘Shareholder values’, The Economist, 10 02 1996, p. 15.Google Scholar