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A Motif-Based Analysis to Reveal Local Implied Information in Cross-Shareholding Networks

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  • Qian Liu
  • Huajiao Li
  • Feng An
  • Nairong Liu
  • Qing Guan
  • Jingjing Jia
  • Pengli An

Abstract

Cross-shareholding is a new type of strategic means for capital operation and is an important component of corporate governance. With the increasing complexity of business motivation, the structure of a cross-shareholding network (CSN) is becoming more intricate, and it exposes various important local patterns with different economic functions. The goal of this paper is to uncover investment mechanisms and economic functions implied in cross-shareholding networks (CSNs) by analyzing the local characteristic patterns of company interactions. In this paper, we construct the CSNs of listed companies and extract the directed triadic motifs to reveal the evolutionary characteristics of local investment patterns at the company and industry levels. On the company level, we find that companies tend to form V-shaped structures with other companies, but bidirectional shareholding patterns and circular relationships in the triads are scarce. On the industry level, we identify the characteristic linking patterns of some industries with a role analysis of the industries. Furthermore, we detect the evolutionary characteristics of industry interrelationships in three implied patterns. Such a motif evolution analysis may provide valuable information for investors and supervisory departments that make decisions about investment portfolios and policy. Meanwhile, this study is also helpful for exploring the implied information in other empirical networks.

Suggested Citation

  • Qian Liu & Huajiao Li & Feng An & Nairong Liu & Qing Guan & Jingjing Jia & Pengli An, 2018. "A Motif-Based Analysis to Reveal Local Implied Information in Cross-Shareholding Networks," Complexity, Hindawi, vol. 2018, pages 1-12, December.
    • Handle: RePEc:hin:complx:7519631
    DOI: 10.1155/2018/7519631
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    References listed on IDEAS

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    1. Dapeng Cai & Yukio Karasawa-Ohtashiro, 2015. "International cross-ownership of firms and strategic privatization policy," Journal of Economics, Springer, vol. 116(1), pages 39-62, September.
    2. Tiziano Squartini & Diego Garlaschelli, 2012. "Triadic motifs and dyadic self-organization in the World Trade Network," Papers 1201.1215, arXiv.org, revised Jan 2012.
    3. FrantiÜek Turnovec, 2005. "Arithmetics of Property Rights: A Leontief-type Model of Ownership Structures," Homo Oeconomicus, Institute of SocioEconomics, vol. 23, pages 371-379.
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    2. Li, Huajiao & Ren, Huijun & An, Haizhong & Ma, Ning & Yan, Lili, 2021. "Multiplex cross-shareholding relations in the global oil & gas industry chain based on multilayer network modeling," Energy Economics, Elsevier, vol. 95(C).

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