Higgins, D., Toms, S. and Filatotchev, I. (2007) Keynes and the cotton industry: a reappraisal. Working Paper. Department of Management Studies, University of York
The paper reinterprets Keynes’s analysis of the crisis in the Lancashire cotton industry in the 1920s. It presents empirical evidence showing that syndicates of local shareholders, but not the banks, were an important brake on firms exiting, at a time when exit barriers were otherwise unproblematic in this competitive industry. Moreover, syndicates milked firms of any profits through dividends, thereby limiting reinvestment and re-equipment possibilities. The case shows that where laissez-faire fails in response to a crisis, the associated response may need to assess both ownership structure and its relationship to competitive industry structure.
|Institution:||The University of York|
|Academic Units:||The University of York > The York Management School|
|Depositing User:||Sherpa Assistant|
|Date Deposited:||09 Nov 2007 10:35|
|Last Modified:||23 Jun 2016 23:02|
|Publisher:||Department of Management Studies, University of York|