2006.134: Ownership and Control: A Small-World Analysis
2006.134: M. J. Conyon and M. R. Muldoon (2007) Ownership and Control: A Small-World Analysis.
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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 2003 > 89 Other areas of applied and interdisciplinary physics |
| MIMS number: | 2006.134 |
| Deposited By: | Dr Mark Muldoon |
| Deposited On: | 30 November 2007 |
Available Versions of this Item
- Ownership and Control: A Small-World Analysis (deposited 05 September 2008)
- Ownership and Control: A Small-World Analysis (deposited 30 November 2007) [Currently Displayed]
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