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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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|
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|
|Deposited By:||Dr Mark Muldoon|
|Deposited On:||30 November 2007|
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- Ownership and Control: A Small-World Analysis (deposited 05 September 2008)
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