Abstract
This paper aims to provide a network analysis of the relationships of shareholders in the Italian stock market for understanding the relevance of portfolio diversification in integrated ownership and firms control. The analysis combines both a complex network and an operational research approach. The former is used for statistical analyses on portfolio diversification. The latter estimates integrated ownership considering the paths on the network, and it emphasizes the difference between ownership and control. The dataset consists of nearly 300 companies traded on the Italian Stock Market. Data were retrieved through CONSOB and AIDA database, and they are adjourned at 2008. The dataset is completed with information on banks and insurance companies. Such data were retrieved through BANKSCOPE and ISIS databases.
Similar content being viewed by others
References
Aganin A, Volpin P (2005) The history of corporate ownership in Italy. In: Morck Randall K (eds) The history of corporate governance around the world. University of Chicago Press, Chicago, pp 325–361
Bianchi M, Bianco M, Enriques L (2002) Pyramidal groups and the separation between ownership and control in Italy. In: Becht M, Barca F (eds) The Control of Corporate Europe, pp 154–188
Bianchi M et al (2008) The evolution of ownership and control structures in Italy in the last 15 years. In: Proceedings of the conference corporate governance in Italy: 10 years after the consolidated Law on Finance (TUF) organized by the Bank of Italy in Rome, 12/11/2008, http://www.bancaditalia.it/studiricerche/convegni/atti/corp_gov_it/session1/evolution_ownership_control_structures.pdf
Chapelle A, Szafarz A (2005) Controlling firms through the majority voting rule. Physica A 355: 509–529
Dietzenbacher E, Temurshoev U (2008) Ownership relations in the presence of cross-shareholding. J Econ 95(3): 189–212
Flath D (1992) Indirect shareholding within Japan’s business groups. Econ Lett 38: 223-227
Garlaschelli D, Battiston S, Castri MV, Servedio DP, Caldarelli G (2005) The scale-free topology of market investments. Physica A 350: 491–499
Huber J, Ryll S (1989) Kapitalbeteiligungen von Bund und Laendern. Eine Analyse auf Basis einer Verflechtungsrechnung. Zeitschrift fur offentliche und gemeinwirtschatliche Unternehemen 12(3): 287–305
Newman MEJ (2003) Mixing patterns in networks. Phys Rev E 67: 026126
Newman M, Barabasi A-L, Watts DJ (2006) The structure and dynamics of networks. Princeton Studies in Complexity Princeton University Press, Princeton
Salvemini MT, Simeone B, Succi R (1995) Analisi del possesso integrato nei gruppi di imprese mediante grafi. L’Industria 4(XVI): 641–662
Trusina A, Maslov S, Minnhagen P, Sneppen K (2004) Hierarchy measures in complex networks. Phys Rev Lett 92: 178702
Turnovec F (1999) Privatization, ownership structure and transparency: how to measure the true involvement of the state. Eur J Polit Econ 15: 605–618
Turnovec F (2005) Arithmetic of property rights: a leontief-type model of ownership structures. Working paper UK FSV-IES 70
Volpin P (2002) Governance with poor investor protection: evidence from top executive turnover in Italy. J Financ Econ 64: 61–90
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Rotundo, G., D’Arcangelis, A.M. Ownership and control in shareholding networks. J Econ Interact Coord 5, 191–219 (2010). https://doi.org/10.1007/s11403-010-0068-4
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11403-010-0068-4