You are here

Backbone of Complex Networks of Corporations: The Flow of Control (2009)

Primary tabs

1.22 MiB80116
This torrent has no flags.


We present a methodology to extract the backbone of complex networks based on the weight and directionof links, as well as on nontopological properties of nodes. We show how the methodology can be applied ingeneral to networks in which mass or energy is flowing along the links. In particular, the procedure enables usto address important questions in economics, namely, how control and wealth are structured and concentratedacross national markets. We report on the first cross-country investigation of ownership networks, focusing onthe stock markets of 48 countries around the world. On the one hand, our analysis confirms results expected onthe basis of the literature on corporate control, namely, that in Anglo-Saxon countries control tends to bedispersed among numerous shareholders. On the other hand, it also reveals that in the same countries, controlis found to be highly concentrated at the global level, namely, lying in the hands of very few importantshareholders. Interestingly, the exact opposite is observed for European countries. These results have previ-ously not been reported as they are not observable without the kind of network analysis developed here.


Archived Discussion: World's Stocks Controlled by Select Few - In Depth SFIT Statistical Analysis Paper