The flow of corporate control in the global ownership network

We propose a model and algorithm to measure the amount of influence a shareholder has over the flow of corporate control held by the ultimate owners. Existing models of corporate ownership and control either focus on the ultimate owners’ influence or inadequately evaluate the influence possessed by...

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Bibliographic Details
Published in:PloS one 2023-08, Vol.18 (8), p.e0290229-e0290229
Main Authors: Mizuno, Takayuki, Doi, Shohei, Kurizaki, Shuhei
Format: Article
Language:English
Subjects:
Algorithms
Biology and Life Sciences
Computer and Information Sciences
Decision making
Economic aspects
Financial services industry
Games
Global economy
Institutional investments
International aspects
Management
Ownership
People and Places
Physical Sciences
Power
Power flow
Research and Analysis Methods
Social Sciences
Stock-exchange
Stockholders
Voting rights
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Summary:We propose a model and algorithm to measure the amount of influence a shareholder has over the flow of corporate control held by the ultimate owners. Existing models of corporate ownership and control either focus on the ultimate owners’ influence or inadequately evaluate the influence possessed by intermediate shareholders in a ownership network. As it extends Network Power Index (NPI) that describes the the power of corporate control possessed by the ultimate owners, our new model, Network Power Flow (NPF), delineates the distribution of ownership influence among shareholders across the network and identifies the channels through which the ultimate owners’ corporate control travel through the global shareholding network. Our analysis of NPI and NPF values for 7 million ultimate owners and 16 million shareholders reveals a new landscape of ownership and control in the global shareholding network that remained opaque before.
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0290229