Economics at your fingertips  

A counterfactual analysis of the bank-industry relationship in Italy, 1913-1936

Carlo Drago, Roberto Ricciuti, Alberto Rinaldi and Michelangelo Vasta

Department of Economics (DEMB) from University of Modena and Reggio Emilia, Department of Economics "Marco Biagi"

Abstract: Until the Banking reform in 1936, banks and industrial companies in Italy were strongly intertwined (both in terms on ownership and interlocking directorates). Using Imita.db – a large a dataset containing data on over 300,000 directors of Italian joint stock companies – this paper analyses what would have happened to the Italian corporate network in the years 1913, 1921, 1927 and 1936 if the “mixed banks” and their directors would have not been there. Our experiments show that new centers of the system would have emerged (financial and electricity and phone companies), confirming the interconnected nature of the Italian capitalism. We also analyze two industries, textiles and iron and steel, characterized by different labor-to-capital intensities to check for sectoral differences. Contrary to conventional wisdom, we find that local banks were important in funding both industries. Overall we call into question the role of mixed banks.

Keywords: corporate governance; economic history; network analysis (search for similar items in EconPapers)
Pages: pages 41
Date: 2013-05
New Economics Papers: this item is included in nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Department of Economics (DEMB) from University of Modena and Reggio Emilia, Department of Economics "Marco Biagi" Contact information at EDIRC.
Bibliographic data for series maintained by Sara Colombini ().

Page updated 2024-07-10
Handle: RePEc:mod:dembwp:0013