Abstract:
The phenomenon of interlocking directorates is widespread among corporate across the world. This
paper studies the structure and extent of interlocking directorates within Indian business groups and
analyses the performance effects of such interlocks. It finds that large groups tend to have more
interlocks and more heterogeneous the group is, lesser are the interlocks. Finance and trading
companies are seen to have a higher intensity of interlocks and holding companies occupy important
nodes in the directorial network. The paper also shows that directorial interlocks improve the
performance of group-affiliated firms.
