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Communities detection as a tool to assess a reform of the Italian interlocking directorship network

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  • Drago, Carlo
  • Ricciuti, Roberto

Abstract

Interlocking directorships are important communication channels among companies and may have anticompetitive effect. A corporate governance reform was introduced in 2011 to prevent interlocking directorships in the financial sector. We apply community detection techniques to the analysis of the networks in 2009 and 2012 to ascertain the effect of such reform on the Italian directorship network. We find that, although the number of interlocking directorships decreases in 2012, the reduction takes place mainly at the periphery of the network. The network core is stable, allowing the most connected companies to keep their strategic position.

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  • Drago, Carlo & Ricciuti, Roberto, 2017. "Communities detection as a tool to assess a reform of the Italian interlocking directorship network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 466(C), pages 91-104.
    • Handle: RePEc:eee:phsmap:v:466:y:2017:i:c:p:91-104
    DOI: 10.1016/j.physa.2016.08.029
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    Cited by:

    1. Drago, Carlo & Gatto, Andrea & Ruggeri, Matteo, 2023. "Telemedicine as technoinnovation to tackle COVID-19: A bibliometric analysis," Technovation, Elsevier, vol. 120(C).
    2. Carlo Drago & Roberto Ricciuti, 2019. "Bootstrapping the Gini Index of the Network Degree: An Application for Italian Corporate Governance," Working Papers 05/2019, University of Verona, Department of Economics.
    3. Gupta, Aparna & Owusu, Abena & Zou, Lei, 2021. "Identifying board of director network influence for firm characteristics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 581(C).

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