Trust Buster (1901-1909)

Total Page:16

File Type:pdf, Size:1020Kb

Trust Buster (1901-1909) November 2020 | Lessons from the past Trust Buster (1901-1909) In 1901, US President Theodore Roosevelt began the Muckraking process of dismantling the country’s sprawling A significant wave of M&A activity in the 1890s reduced monopolies, gaining the name ‘Trust Buster’. The history competition as the trusts swallowed up smaller of this episode provides an interesting lesson about competitors.4 As a result, they came under increasing investing in companies with dominant market positions. public criticism. For example, The History of the Standard Oil Company written in 1904 by investigative journalist Ida Robber Barons Tarbell, one of the original ‘muckrakers’, was a vitriolic The late 19th century was a period of rapid growth of the exposé of the dubious practices of the company. US economy which saw the rise of powerful corporations, Accusations against the companies included market such as Standard Oil and US Steel. The men who ran these manipulation, stifling competition, poor product quality giant companies, such as Andrew Carnegie, J. P. Morgan and employee exploitation, going as far as violence and and John D. Rockefeller, were given the name ‘robber intimidation. The companies were clearly not operating in barons’ by critics because of their extreme wealth and the interests of all stakeholders. power. Trust Buster Monopolies Theodore ‘Teddy’ Roosevelt became US President after Many of these corporations, which were called ‘trusts’ the assassination of William McKinley in 1901, and was because of their legal structure at the time, came to returned to the White House by a landslide victory in the dominate their particular industries. For example, the 1904 presidential election. Roosevelt was committed to American Sugar Refining Company controlled 98% of the taking on the monopoly power of the trusts, arguing he US sugar market and Standard Oil 91% of the US refining was not anti-business, nor even anti-trust, but rather anti market.1 bad-business. When US Steel was created in 1901, it became the world’s largest company and Andrew Carnegie, who was bought- Bonfire of the Trusts out as part of the deal, became one of the world’s richest Roosevelt used the Sherman Act to break up the trusts. men.2 When the company took over the Tennessee Coal, His first target was Northern Securities Company, a Iron and Railroad Company it would produce more than conglomerate controlling railways across the US, which half of the steel in the US.3 was taken to court in 1902 and dissolved by the Supreme Court in 1904. Next came the Beef-Trust case which was precipitated by a public storm after beef price rises in 1902.5 Other Roosevelt was committed to targets included the American Tobacco Company (1911), taking on the monopoly power of the Chicago Meat Packers (1905), Otis Elevator (1906) and Du Pont (1907). the trusts, arguing he was not An important and symbolic example was Standard Oil. The anti-business, nor even anti-trust, US federal court ruled in favour of the government in 1909, but the company appealed against its court-ordered but rather anti bad-business. dissolution. However, it was finally broken into 34 separate companies after an appeal was rejected by the Supreme Court in 1911.6 Legislation aiming to restrict the monopoly power of these During Roosevelt’s presidency more than 40 antitrust companies resulted in the Sherman Anti-Trust Act of 1890. suits were filed against corporations and the policy However, the political will to use the law to take on vested continued under his successor President Taft from 1909. In interests did not exist in the 1890s. total, the Department of Justice filed 127 antitrust cases between 1904 and 1914, resulting in a significant diminution of US corporate power.7 At Stewart Investors we favour management and owners who provide careful stewardship. This includes paying Impact on shareholders reasonable rates of tax, charging customers a fair price Antitrust investigations were negative for shareholders of and treating the workforce well which is not always the targeted companies as share prices declined substantially case with monopolistic companies such as the ones during these years. The investigations had a dampening broken up by Roosevelt. impact on the stock market as a whole.8 The antitrust campaign highlights how owning shares in companies with monopolistic powers at certain times can be a bad investment. 1 Source: http://origins.osu.edu/milestones/january-2019- us-sugar-monopoly-E.C.Knight-Sherman-Act-Spreckels- 21st century monopolies court, https://en.wikipedia.org/wiki/Standard_Oil Today, US companies such as Alphabet, Amazon, Apple, Facebook and Microsoft have dominant positions in their 2 Source: https://www.history.com/topics/19th-century/ markets. They have been criticised for swallowing up andrew-carnegie smaller rivals, minimising tax payments and poor 3 Source: https://en.wikipedia.org/wiki/U.S._Steel treatment of workers, all of which could threaten their social licence to operate.9 It seems that they are emerging 4 Gerard Helferich, An Unlikely Trust (2018), 39. from the coronavirus pandemic in even stronger positions. 5 George Bittlingmayer, The stock market and early The EU has shown willingness to challenge some of these antitrust enforcement, Journal of Law & Economics, companies. A competition probe ruled that Alphabet’s xxxvi, (1993), 6. Google had spent 10 years blocking rival online 6 Source: https://en.wikipedia.org/wiki/Standard_Oil advertisers.10 As a result the EU imposed fines on Google totalling €8.2bn.11 7 Bittlingmayer, 10, 13. We believe these companies may face more intensive 8 Bittlingmayer, 29. regulation in the future and could ultimately be broken up 9 ‘Big Tech has moved from offering utopia to selling or severely curtailed, like the early 20th century dystopia’ https://www.ft.com/content/78d78b7c-fbfc- monopolies, with negative implications for shareholders. 11e9-a354-36acbbb0d9b6 However, it may take a radical US President like Teddy Roosevelt to begin the process in the US. 10 Source:https://www.ft.com/content/e26b4ae0-4b00- 11e9-8b7f-d49067e0f50d The trust busting of the early 20th century highlights the risk of owning large, monopolistic companies when their 11 Source: https://www.ft.com/content/e26b4ae0-4b00- licence to operate is challenged. This is one of the reasons 11e9-8b7f-d49067e0f50d we do not hold positions in these kind of companies in our portfolios. Important information This document has been prepared for general information purposes only and is intended to provide a summary of the subject matter covered. It does not purport to be comprehensive or to give advice. The views expressed are the views of the writer at the time of issue and may change over time. This is not an offer document, and does not constitute an offer, invitation, investment recommendation or inducement to distribute or purchase securities, shares, units or other interests or to enter into an investment agreement. No person should rely on the content and/or act on the basis of any matter contained in this document. This document is confidential and must not be copied, reproduced, circulated or transmitted, in whole or in part, and in any form or by any means without our prior written consent. The information contained within this document has been obtained from sources that we believe to be reliable and accurate at the time of issue but no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information. We do not accept any liability for any loss arising whether directly or indirectly from any use of this document. References to “we” or “us” are references to Stewart Investors. Stewart Investors is a trading name of First Sentier Investors (UK) Funds Limited, First Sentier Investors International IM Limited and First Sentier Investors (Ireland) Limited. First Sentier Investors entities referred to in this document are part of First Sentier Investors, a member of MUFG, a global financial group. First Sentier Investors includes a number of entities in different jurisdictions. MUFG and its subsidiaries do not guarantee the performance of any investment or entity referred to in this document or the repayment of capital. Any investments referred to are not deposits or other liabilities of MUFG or its subsidiaries, and are subject to investment risk including loss of income and capital invested. Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell. Reference to the names of any company is merely to explain the investment strategy and should not be construed as investment advice or a recommendation to invest in any of those companies. Hong Kong and Singapore In Hong Kong, this document is issued by First Sentier Investors (Hong Kong) Limited and has not been reviewed by the Securities & Futures Commission in Hong Kong. In Singapore, this document is issued by First Sentier Investors (Singapore) whose company registration number is 196900420D. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Stewart Investors is a business name of First Sentier Investors (Hong Kong) Limited. Stewart Investors (registration number 53310114W) is a business division of First Sentier Investors (Singapore). Australia In Australia, this document is issued by First Sentier Investors (Australia) IM Limited AFSL 289017 ABN 89 114 194 311 (FSI AIM). Stewart Investors is a trading name of FSI AIM. United Kingdom This document is not a financial promotion. In the United Kingdom, this document is issued by First Sentier Investors (UK) Funds Limited which is authorised and regulated in the UK by the Financial Conduct Authority (registration number 143359). Registered office: Finsbury Circus House, 15 Finsbury Circus, London, EC2M 7EB, number 2294743.
Recommended publications
  • JP Morgan and the Money Trust
    FEDERAL RESERVE BANK OF ST. LOUIS ECONOMIC EDUCATION The Panic of 1907: J.P. Morgan and the Money Trust Lesson Author Mary Fuchs Standards and Benchmarks (see page 47) Lesson Description The Panic of 1907 was a financial crisis set off by a series of bad banking decisions and a frenzy of withdrawals caused by public distrust of the banking system. J.P. Morgan, along with other wealthy Wall Street bankers, loaned their own funds to save the coun- try from a severe financial crisis. But what happens when a single man, or small group of men, have the power to control the finances of a country? In this lesson, students will learn about the Panic of 1907 and the measures Morgan used to finance and save the major banks and trust companies. Students will also practice close reading to analyze texts from the Pujo hearings, newspapers, and reactionary articles to develop an evidence- based argument about whether or not a money trust—a Morgan-led cartel—existed. Grade Level 10-12 Concepts Bank run Bank panic Cartel Central bank Liquidity Money trust Monopoly Sherman Antitrust Act Trust ©2015, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, www.stlouisfed.org/education. 1 Lesson Plan The Panic of 1907: J.P. Morgan and the Money Trust Time Required 100-120 minutes Compelling Question What did J.P. Morgan have to do with the founding of the Federal Reserve? Objectives Students will • define bank run, bank panic, monopoly, central bank, cartel, and liquidity; • explain the Panic of 1907 and the events leading up to the panic; • analyze the Sherman Antitrust Act; • explain how monopolies worked in the early 20th-century banking industry; • develop an evidence-based argument about whether or not a money trust—a Morgan-led cartel—existed • explain how J.P.
    [Show full text]
  • Unit 7 Business Regulation Case Study: Standard Oil
    UNIT 7 BUSINESS REGULATION CASE STUDY: STANDARD OIL CHAPTER 1 THE INDUSTRIAL REVOLUTION ..................................................................................................1 CHAPTER 2 ROCKEFELLER’S MILLIONS ...........................................................................................................7 CHAPTER 3 JOHN D. ROCKEFELLER IN CLEVELAND.................................................................................12 CHAPTER 4 THE THEORY OF LAISSEZ-FAIRE................................................................................................15 CHAPTER 5 EMPIRE ʹS CHALLENGE TO STANDARD ..................................................................................19 CHAPTER 6 BUSINESS 0RGANIZATIONS.........................................................................................................23 CHAPTER 7 ROBBER BARON OR INDUSTRIAL STATESMAN ....................................................................28 CHAPTER 8 THE SHERMAN ANTI-TRUST ACT AND STANDARD OIL....................................................33 CHAPTER 9 STANDARD OIL ON TRIAL...........................................................................................................36 CHAPTER 10 THE SUPREME COURT DECIDES...............................................................................................39 by Thomas Ladenburg, copyright, 1974, 1998, 2001, 2007 100 Brantwood Road, Arlington, MA 02476 781-646-4577 [email protected] Page 1 Chapter 1 The Industrial Revolution he word ‘revolution’ implies
    [Show full text]
  • The Dismantling of the Standard Oil Trust
    The Dismantling of The Standard Oil Trust The saga of Standard Oil ranks as one of the most dramatic episodes in the history of the U.S. economy. It occurred at a time when the country was undergoing its rapid transformation from a mainly agricultural society to the greatest industrial powerhouse the world has ever known. The effects of Standard Oil on the U.S., as well as on much of the rest of the world, were immense, and the lessons that can be learned from this amazing story are possibly as relevant today as they were a century ago. Standard Oil Company was founded by John D. Rockefeller in Cleveland, Ohio in 1870, and, in just a little over a decade, it had attained control of nearly all the oil refineries in the U.S. This dominance of oil, together with its tentacles entwined deep into the railroads, other industries and even various levels of government, persisted and intensified, despite a growing public outcry and repeated attempts to break it up, until the U.S. Supreme Court was finally able to act decisively in 1911. John D. Rockefeller John Davidson Rockefeller was born the second of six children into a working class family in Richford, (upstate) New York in 1839. In 1853, the family moved to a farm in Strongsville, Ohio, near Cleveland. Under pressure from his father, Rockefeller dropped out of high school shortly before commencement and entered a professional school, where he studied penmanship, bookkeeping, banking and commercial law. In 1859 Edwin Drake struck oil in Titusville, in western Pennsylvania.
    [Show full text]
  • Profile of John D. Rockefeller
    Profile of John D. Rockefeller Few family names are arguably better known in the United States than the Rockefellers. As convenient and visible public icons of wealth, big business, and politics, the Rockefellers have been revered and reviled in American music, literature, and news media. For instance, during the Great Depression, Louis Armstrong sung about being as “Rich as Rockefeller”. Decades later, for many Americans, “Rockefeller” is still synonymous with money and power. The Rockefellers have made substantial contributions to American politics, health care, and arts as well as to the controversial “competitive capitalism” or business monopoly that gripped the nation at the turn of the 20th century. Few Americans are aware, however, of the equally profound influence the family patriarch, John D. Rockefeller, had on American philanthropy and traditions of civic responsibility and leadership. John D. Rockefeller was born in 1839 on a farm in Richford, NY, the son of William A. and Eliza Rockefeller. One of six Rockefeller children, John and his family moved to Ohio in his teenage years. John attended public schools in Cleveland and after a short stint at a business college, began work as a bookkeeper. Deeply religious, Rockefeller worshiped at a Baptist Church each Sunday and by age 21 was selected as a Church trustee. He regularly gave a portion of all his total earnings to his church, as well as to other religious and charitable endeavors. At his first job, Rockefeller earned all of $3.57 for a week’s work. In wasn’t long, however, before the ambitious young man joined with a partner in 1859 to start a produce business, using for capital $1,000 in savings and a $1,000 loan from his father.
    [Show full text]
  • Authorised Cartels in Twentieth-Century Japan
    10 Policy transfer and its limits Authorised cartels in twentieth-century Japan Takahiro Ohata and Takafumi Kurosawa Introduction The history of cartel registration in Japan deserves special attention for several reasons. First, the country had the world’s most institutionalised and encompassing cartel registration system during the second half of the twentieth century. A system- atic international comparison conducted by Corwin Edwards, a renowned trust-buster in US and founder of Japan’s post-war antimonopoly law, showed that the scope of reporting requirements was the widest in Japan among the 11 nations compared (Wells 2002; Edwards 1967: 48). Second, Japan’s system clearly exhibits the dual nature of the cartel register; namely, authorisation of cartels on the one hand, and containment of them on the other. The balance between these two factors changed over time, reflecting the industrial structure, the role of state intervention, and the international environ- ment. Additionally, Japan is representative of how the practice of cartel registration flourished in the spheres between the general prohibition of cartel and economic liberalism, where laissez-faire meant the liberty of contract and relative freedom for cartels. Third, Japan’s cartel registration system exhibits the uniqueness as well as the universality of the nation’s experience. Its uniqueness lies in the dramatic volte-face in the competition policy following American occupation and policy transfer imme- diately after the Second World War. The huge leap from the promotion of cartels and a war economy to the other extreme of an idealistic and draconian post-war anti- trust law was ordered and supervised by the General Headquarters of the Supreme Commander for the Allied Powers (GHQ/SCAP).
    [Show full text]
  • Whither the Keiretsu, Japan's Business Networks? How Were They Structured? What Did They Do? Why Are They Gone?
    UC Berkeley Working Paper Series Title Whither the Keiretsu, Japan's Business Networks? How Were They Structured? What Did They Do? Why Are They Gone? Permalink https://escholarship.org/uc/item/00m7d34g Authors Lincoln, James R. Shimotani, Masahiro Publication Date 2009-09-24 eScholarship.org Powered by the California Digital Library University of California WHITHER THE KEIRETSU, JAPAN’S BUSINESS NETWORKS? How were they structured? What did they do? Why are they gone? James R. Lincoln Walter A. Haas School of Business University of California, Berkeley Berkeley, CA 94720 USA ([email protected]) Masahiro Shimotani Faculty of Economics Fukui Prefectural University Fukui City, Japan ([email protected]) 1 INTRODUCTION The title of this volume and the papers that fill it concern business “groups,” a term suggesting an identifiable collection of actors (here, firms) within a clear-cut boundary. The Japanese keiretsu have been described in similar terms, yet compared to business groups in other countries the postwar keiretsu warrant the “group” label least. The prewar progenitor of the keiretsu, the zaibatsu, however, could fairly be described as groups, and, in their relatively sharp boundaries, hierarchical structure, family control, and close ties to the state were structurally similar to business groups elsewhere in the world. With the break-up by the U. S. Occupation of the largest member firms, the purging of their executives, and the outlawing of the holding company structure that held them together, the zaibatsu were transformed into quite different business entities, what we and other literature call “network forms” of organization (Podolny and Page, 1998; Miyajima, 1994).
    [Show full text]
  • Address on Trust and Cartel Problem in the United States
    .y a ADDRESS ON TRUST AND CARTEL PROBLEM IN THE UNITED STATES AND ITS RELATION TO FURTHER LEGISLATION AS RECOMMENDED y. BY THE TEMPORARY NATIONAL ECONOMIC COMMITTEE DELIVERED BY HONORABLE EWIN L. DAVIS MEMBER OF THE FEDERAL TRADE COMMISSION BEFORE THE HARVARD LAW SCHOOL FORUM , • AT n" r. HARVARD UNIVERSITY, CAMBRIDGE, MASSACHUSETTS MAY 10, 1946 I:'' I.-'' TRUST AND CARTEL PROBLEM IN THE UNITED STATES AND ITS RELATION TO FURTHER LEGISLATION AS RECOMMENDED BY THE TEMPORARY NATIONAL ECONOMIC COMMITTEE The problem of trusts and monopolies has been of serious concern to the people since ancient times. The fight against it has gone on through the ages. When brought under control as to one form, it fre- quently breaks out in another form. For more than a half century the control of monopoly In this country has been a pressing national issue. SHERMAN ANTITRUST ACT After an unprecedented number of combinations and conspiracies in restraint of trade and a nation-wide protest against such practices there was enacted by the Congress and approved by the President on July 2, 1890, what is generally called the "Sherman Antitrust Act," providing that "Every contract, combination In the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be Il- legal." Section 2 of such Act provides that "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or com- merce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor," punishable, upon conviction thereof, by fine or imprisonment, or both.l/ There have been varying policies or periods of enforcement of this statute, dependent upon the attitude of those charged with Its enforcement and the facilities available.
    [Show full text]
  • Are the Keiretsu Anticompetitive - Look to the Law
    NORTH CAROLINA JOURNAL OF INTERNATIONAL LAW Volume 18 Number 2 Article 3 Winter 1993 Are the Keiretsu Anticompetitive - Look to the Law Ely Razin Follow this and additional works at: https://scholarship.law.unc.edu/ncilj Recommended Citation Ely Razin, Are the Keiretsu Anticompetitive - Look to the Law, 18 N.C. J. INT'L L. 351 (1992). Available at: https://scholarship.law.unc.edu/ncilj/vol18/iss2/3 This Article is brought to you for free and open access by Carolina Law Scholarship Repository. It has been accepted for inclusion in North Carolina Journal of International Law by an authorized editor of Carolina Law Scholarship Repository. For more information, please contact [email protected]. Are the Keiretsu Anticompetitive - Look to the Law Cover Page Footnote International Law; Commercial Law; Law This article is available in North Carolina Journal of International Law: https://scholarship.law.unc.edu/ncilj/vol18/ iss2/3 Are the Keiretsu Anticompetitive? Look to the Law By Ely Razin* Table of Contents I. Introduction .......................................... 352 II. Anticompetitive Behavior .............................. 357 A . Introduction ...................................... 357 B. Keiretsu Practices .................................. 358 1. Structural Elements ............................ 358 a. Financial Links ............................. 359 b. M anagerial Links ........................... 361 2. Operational Elements .......................... 362 a. Operational Links .......................... 362 b. Resource-Pooling
    [Show full text]
  • Chaebols and Firm Dynamics in Korea
    Chaebols and firm dynamics in Korea Philippe Aghion, Sergei Guriev, Kangchul Jo Abstract We study firm dynamics in Korea before and after the 1997-98 Asian crisis and pro-competitive reforms that reduced the dominance of chaebols. We find that in industries that were dominated by chaebols before the crisis, labor productivity and TFP of non-chaebol firms increased markedly after the reforms (relative to other industries). Furthermore, entry of non-chaebol firms increased significantly in all industries after the reform. Finally, after the crisis, non-chaebol firms also significantly increased their patenting activity (relative to non-chaebol firms). These results are in line with a neo-Schumpeterian view of transition from a growth model based on investment in existing technologies to an innovation-based model. Keywords: Schumpeterian growth, chaebols, Asian crisis JEL Classification Number: O43, L25 Contact details: Sergei Guriev, One Exchange Square, London EC2A 2JN, United Kingdom Phone: +44 20 7338 6805; Fax: +44 20 7338 6111; email: [email protected] Philippe Aghion, College de France and London School of Economics Phone: +33 1 44 27 17 06; email: [email protected] Kangchul Jo, London School of Economics Phone: +44 7477 006402; email: [email protected] Sergei Guriev is Chief Economist at the European Bank for Reconstruction and Development, Professor of Economics at the Institut d’´etudes politiques de Paris (Sciences Po) and Research Fellow at the Centre for Economic Policy Research (CEPR). Philippe Aghion is a Professor of Economics at the College de France and London School of Economics. Kangchul Jo is a doctoral student at London School of Economics.
    [Show full text]
  • Think 1 Handout
    HST 112 — Survey of American History Textbook treatments of J. D. Rockefeller Textbook excerpt one1 In the days before the automobile and gasoline, crude oil was refined into lubricating oil for machinery and kerosene for lamps, the major source of lighting in the nineteenth century. The amount of capital needed to buy or build an oil refinery in the 1860s and 1870s remained relatively low — roughly what it cost to lay one mile of railroad track. As a result, the new petroleum industry experienced riotous competition. Ultimately, John D. Rockefeller and his Standard Oil Company succeeded in controlling nine-tenths of the oil-refining business. Rockefeller grew up the son of a shrewd Yankee who peddled quack cures for cancer. Under his father's rough tutelage, Rockefeller learned how to drive a hard bargain. In 1865, at the age of twenty-five, he controlled the largest oil refinery in Cleveland. Like a growing number of business owners, Rockefeller abandoned partnership or single proprietorship to embrace the corporation as the business structure best suited to maximize profit and minimize personal liability. In 1870, he incorporated his oil business, founding the Standard Oil Company. As the largest refiner in Cleveland, Rockefeller demanded illegal rebates from the railroads in exchange for his steady business. The secret rebates enabled Rockefeller to drive out his competitors through predatory pricing. The railroads needed Rockefeller's business so badly that they gave him a share of the rates that his competitors paid. A Pennsylvania Railroad official later confessed that Rockefeller extracted such huge rebates that the railroad, which could not risk losing his business, sometimes ended up paying him to transport Standard’s oil.
    [Show full text]
  • Cartel Regulation 2021
    Cartel Regulation 2021 In association with Dechert LLP © Law Business Research 2020 Keep moving forward Dechert has the global presence and experience to work with you across jurisdictions to quietly and efficiently prevent or resolve cartel investigations. You can trust us to understand your business, efficiently manage internal investigations and successfully implement remedies and preventive measures that minimize risk. If a government investigation is imminent, you are in good hands. We routinely defend raids and work with enforcers at the Department of Justice, the European Commission and other major competition authorities. Our advocacy has helped clients prevent charges and reduce compliance burdens and fines, often with no public attention. It’s simple. You’re in the business of progress — we’re here to help you keep moving forward. dechert.com/antitrust © Law Business Research 2020 Publisher Tom Barnes [email protected] Subscriptions Claire Bagnall Cartel Regulation [email protected] Senior business development manager Adam Sargent 2021 [email protected] Published by Law Business Research Ltd Contributing editor Meridian House, 34-35 Farringdon Street London, EC4A 4HL, UK Neil Campbell The information provided in this publication McMillan LLP is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer– Lexology Getting The Deal Through is delighted to publish the twenty-first edition of Cartel client relationship. The publishers and Regulation, which is available in print and online at www.lexology.com/gtdt.
    [Show full text]
  • Chaebols, the Engine of the Korean Economy: a Case Study of the Samsung Group
    Department of Business and Management Chair of Corporate Strategies Chaebols, the engine of the Korean economy: a case study of the Samsung Group SUPERVISOR Prof.ssa Federica Brunetta CANDIDATE Immacolata Andolfo Id. No 687771 CO-SUPERVISOR Prof.ssa Karynne Turner ACADEMIC YEAR 2017/2018 A mamma e papà, la mia forza, la mia ancora ed il mio sostegno più grande. Summary Introduction .............................................................................................................. 3 Chapter 1: Inside Korean Chaebol ..........................................................................6 1.1 History of Chaebols ........................................................................................... 6 1.2 Corporate Governance ..................................................................................... 11 1.3 Chaebols’ Institution Based-View ................................................................... 18 1.4 Strengths and Weaknesses ............................................................................... 21 1.4.1 Weaknesses ............................................................................................... 21 1.4.2 Strengths ................................................................................................... 23 1.4.2.1 Do chaebols support innovation? ....................................................... 25 1.5 Multiplex Ties Between Korean Business Groups .......................................... 27 1.6 A New Era for Chaebols? ...............................................................................
    [Show full text]