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: http://eprints.maths.manchester.ac.uk/id/eprint/969

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