Director interlocking: What we know and what we are yet to learn

Dane Etheridge
University of Western Australia
Australia

H.Y. Izan
University of Westen Australia
Australia

Raymond da Silva Rosa
University of Western Australia
Australia

Abstract:
We conduct a review of the international director interlocking literature, outlining the challenges facing researchers interested in director interlocking and suggest avenues for future research that have the potential to meet Mizruchi’s (1996) ‘So What?’ challenge to director interlocking researchers. We contribute to the literature by using Australian data to test the generalisability of the predominately US results and by exploring the relationship between director interlocking, corporate governance and CEO remuneration. The extant interlocking research utilises a wide range of metrics to measure director interlocking and company centrality. We argue that it is vital that future researchers give consideration to the metrics they use, as they have subtle but important differences.