Creditors’ Revenge: The Struggle for Corporate Control in an Era of Financialization and Globalization

• In Event: 463 - Regular Session. Economic Sociology 4

Abstract

Who controls American corporations? In the wake of de-unionization and financialization, market governance has flourished and afforded immense power to shareholders and corporate managers. Does this environment give other elite groups like creditors a voice in corporate affairs? Using unique panel data and annual financial reports on 170 U.S. apparel, footwear, and retail firms, we find that creditors with sufficient institutional resources have significant influence over corporate strategy. Indeed, creditors represent an additional opponent to organized labor and other elites, able to leverage their legal privileges to discipline workers as well as managers and shareholders. Our results indicate that creditors remain a powerful interest group within American corporate capitalism.

Authors

• Matthew Soener, The Ohio State University

• Michael David Nau, Ohio State University