Finance capital markets and corporate decision-making processes: The case of W. T. Grant Company's bankruptcy

The effect of capital markets on corporate decision making has been a focus of scholarly attention for more than a century. The existing literature has remained sparse, however, in detailed analyses of the processes and effects of organized finance capital markets on managerial discretion. The case of W. T. Grant Company's bankruptcy illustrates the mechanisms by which the banking community's organized control of the finance capital markets posed a constraining influence on the firm's decision-making processes. This influence extended to the decision to throw the company into involuntary bankruptcy. The case also illustrates finance capital to be both a unique resource (having no alternatives) and a special relationship that, unlike material capital supplier relationships, has long-term consequences for the borrowing firm.     

Racial Disparities in Access to Mortgage Credit: Does Governance Matter?*

Objectives. This article examines the effect of community organizing on the likelihood that minority borrowers pursue home mortgage credit from regulated lenders. Methods. Governance perspectives suggest that community organizations exert significant influence on policy outcomes. We use logistic regression with interaction terms to test the effect of community organizing on the lending outcomes of minority borrowers. We use a matched control sample of cities, drawing on 2004 loan data from two midwestern cities similar in racial and economic composition but with different histories of organizing around the Community Reinvestment Act (CRA). Results. We find differential effects based on an applicant's race or ethnicity. Overall, African‐American applicants are less likely to pursue mortgage credit for home ownership from regulated lenders than their white, non‐Hispanic counterparts. However, African Americans seeking mortgage credit in a city with a history of CRA organizing are more likely to apply to regulated lenders than their racial counterparts in a city without CRA organizing. However, while organizing reduces the disparities between white and African‐American applicants, a gap still remains. Conclusion. African‐American borrowers living in cities with a history of community organizing around CRA appear more likely to pursue mortgage credit from traditional, regulated lenders, suggesting that governance matters.     

De Jure vs. De Facto Rights: A Response to “Human Rights: What the United States Might Learn from the Rest of the World and,Yes, from American Sociology”

Blau's ( 2016 ) argument for a Constitutional Project implies that changes in the U.S. Constitution would ensure fundamental adherence to human rights standards. We disagree with the assumption that legal and institutional instruments are guarantors of human rights practice. Instead, we see rights practices as the function of power struggles that include but go far beyond formal law. Instead, we emphasize an important distinction between de jure human rights instruments and de facto human rights practice, arguing that the focus on de jure instruments and legal discourse misses the significant effect of social movements and direct action that secure rights practice. De jure instruments may codify human rights and enumerate them as important, but they do not carry the authority of enforcement. We argue that the pursuit of human rights must be reframed to include both de jure and de facto human rights terrains. While charitable provisions from generous states can temporarily relieve specific human rights abuses, universal human rights practice requires establishing the fundamental political primacy of the people through the processes of the human rights enterprise.