Ownership and Control: A Small-World Analysis

Conyon, M. J. and Muldoon, M. R. (2007) Ownership and Control: A Small-World Analysis. [MIMS Preprint]

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Abstract

In this paper we investigate the ownership and control of British firms using recent techniques from computational graph theory. Specifically, we analyze the `small-world' of ownership and control. A small-world is a network whose actors are linked by a short chain of acquaintances (short path-lengths), but at the same time have a strongly overlapping circle of friends (high clustering). We simulate a set of corporate worlds using an ensemble of random-graphs introduced by Chung and Lu (2002a,b). We find network structure is more clustered (`clubby') than would be predicted by the random-graph model. Path-lengths, though, are generally not shorter than expected. In addition, we investigate the role of financial institutions: potentially important conduits creating connectivity in corporate networks. We find such institutions give rise to systematically different network topologies.

Item Type:	MIMS Preprint
Additional Information:	To appear in Advances in Strategic Management
Uncontrolled Keywords:	Corporate directorships, small worlds, random graphs
Subjects:	PACS 2010, the AIP's Physics and Astronomy Classification Scheme > 80 INTERDISCIPLINARY PHYSICS AND RELATED AREAS OF SCIENCE AND TECHNOLOGY > 89 Other areas of applied and interdisciplinary physics
Depositing User:	Dr Mark Muldoon
Date Deposited:	30 Nov 2007
Last Modified:	08 Nov 2017 18:18
URI:	https://eprints.maths.manchester.ac.uk/id/eprint/969

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• Ownership and Control: A Small-World Analysis. (deposited 30 Nov 2007) [Currently Displayed]
  • Ownership and Control: A Small-World Analysis. (deposited 05 Sep 2008)

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