Investment Banks as Corporate Monitors in the Early 20th Century United States

@article{Frydman2014InvestmentBA,
  title={Investment Banks as Corporate Monitors in the Early 20th Century United States},
  author={Carola Frydman and Eric Hilt},
  journal={Political Economy - Development: Political Institutions eJournal},
  year={2014}
}
  • C. Frydman, Eric Hilt
  • Published 2014
  • Political Economy - Development: Political Institutions eJournal
We use the Clayton Antitrust Act of 1914 to study the effect of bankers on corporate boards in facilitating access to external finance. In the early twentieth century, securities underwriters commonly held directorships with American corporations; this was especially true for railroads, which were the largest enterprises of the era. Section 10 of the Clayton Act prohibited investment bankers from serving on the boards of railroads for which they underwrote securities. Following the… Expand
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