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A Snapshot of the Ownership Network of the Budapest Stock Exchange

Author

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  • Marton Gosztonyi

    (Budapest Business School)

Abstract

In this study, I use the toolkit of network research to explore the network of ownership relations of entities present on the Budapest Stock Exchange as issuers in 2020, applying static methods and exponential random graph modelling (ERGM) analysis. In the snapshot typology and simulation-based capture of the network, not only the network of relations between issuers present on the stock market is analysed, but also the ownership relations of companies connected to the network but not listed on the stock market; thus, the study addresses the ownership network associated with the stock exchange as a whole. The research results provide us with an accurate answer about the morphological characteristics of the network, the network factors determining centrality, the hierarchy of the network, and the evolution of the network with the help of simulations. The study may allow us to obtain a clearer picture of the interlinkages and clusters of companies listed on the stock market, which can be used as a basis for subsequent longitudinal analyses.

Suggested Citation

  • Marton Gosztonyi, 2021. "A Snapshot of the Ownership Network of the Budapest Stock Exchange," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 20(3), pages 31-58.
    • Handle: RePEc:mnb:finrev:v:20:y:2021:i:3:p:31-58
    as

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    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-20-3-st2-gosztonyi.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Budapest Stock Exchange; complex systems; network analysis; company ownership;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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