6533b858fe1ef96bd12b651d

RESEARCH PRODUCT

The network of global corporate control.

Stefania VitaliStefano BattistonJames B. Glattfelder

subject

FOS: Computer and information sciencesInternationalityFinancial ManagementEconomicsFinancial intermediarylcsh:MedicineNetwork theorySocial and Behavioral Sciences01 natural sciences010305 fluids & plasmasMicroeconomics050207 economicslcsh:ScienceMutual fundIndustrial organizationProfessional CorporationsMultidisciplinaryCorporate governanceApplied MathematicsPhysics05 social sciencesCommerceComputer Science - Social and Information NetworksComplex SystemsSocial Control PoliciesCore (game theory)Interdisciplinary PhysicsGeneral Finance (q-fin.GN)Quantitative Finance - General FinanceResearch ArticlePhysics - Physics and SocietyControl (management)FOS: Physical sciencesSpatial Economic AnalysisPhysics and Society (physics.soc-ph)BiologyStatistical MechanicsFOS: Economics and businessFinancial management0502 economics and business0103 physical sciencesownership corporate control network theoryStructure of MarketsSocial and Information Networks (cs.SI)business.industryFinancial marketlcsh:RIndustrial Organizationlcsh:QbusinessMathematics

description

The structure of the control network of transnational corporations affects global market competition and financial stability. So far, only small national samples were studied and there was no appropriate methodology to assess control globally. We present the first investigation of the architecture of the international ownership network, along with the computation of the control held by each global player. We find that transnational corporations form a giant bow-tie structure and that a large portion of control flows to a small tightly-knit core of financial institutions. This core can be seen as an economic “super-entity” that raises new important issues both for researchers and policy makers.

10.1371/journal.pone.0025995https://pubmed.ncbi.nlm.nih.gov/22046252