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We show that this interlocking relation between entrepreneurs and government lowers the growth rate.
An interlocking relation exists between two firms if they share at least one independent director, and the corresponding cell in the network matrix is assigned a value of 1, otherwise 0. The rest was simple once the network matrix was established.
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Due to this consideration, we can further categorize four types of interlocking networks: within-system interlocking whose controllers are at the same administrative level, within-system and cross-administrative-level interlocking, cross-system and cross-ownership interlocking relations, and interlocking relations outside of the system.
Although our study supports the hypothesis that companies of the same ownership are very likely to form interlocking directorate networks, this does not mean that companies of different ownership cannot establish interlocking relations.
Brookner's artistic chain transits from idea to material, to cultural, to universal -- all interpreted as a code of interlocking relations which phases continually between organic and human-altered structures on all levels.
However, the discrepancy between two companies' market performance basically has no influence on the construction of interlocking directorate relations.
Model 2 examines whether the category of "state is the ultimate controller" can influence the construction of interlocking directorate relations.
Kono et al. (1998) argue that localized interlocking directorate relations are more likely to be an elite formation mechanism.
In order to reduce this reliance, other companies try to establish interlocking directorate relations with these companies.
The results of regional networks show that in all years, interlocking directorate relations are very likely to appear within the same region.
Through all the observational years, there has always been the possibility for interlocking directorate relations to be established between companies in the same region.
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