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The Community Structure of the European Network of Interlocking Directorates 2005–2010

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  • Eelke M Heemskerk
  • Fabio Daolio
  • Marco Tomassini

Abstract

The boards of directors at large European companies overlap with each other to a sizable extent both within and across national borders. This could have important economic, political and management consequences. In this work we study in detail the topological structure of the networks that arise from this phenomenon. Using a comprehensive information database, we reconstruct the implicit networks of shared directorates among the top 300 European firms in 2005 and 2010, and suggest a number of novel ways to explore the trans-nationality of such business elite networks. Powerful community detection heuristics indicate that geography still plays an important role: there exist clear communities and they have a distinct national character. Nonetheless, from 2005 to 2010 we observe a densification of the boards interlocks network and a larger transnational orientation in its communities. Together with central actors and assortativity analyses, we provide statistical evidence that, at the level of corporate governance, Europe is getting closer.

Suggested Citation

  • Eelke M Heemskerk & Fabio Daolio & Marco Tomassini, 2013. "The Community Structure of the European Network of Interlocking Directorates 2005–2010," PLOS ONE, Public Library of Science, vol. 8(7), pages 1-11, July.
  • Handle: RePEc:plo:pone00:0068581
    DOI: 10.1371/journal.pone.0068581
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    References listed on IDEAS

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    6. repec:ucp:bkecon:9789053569733 is not listed on IDEAS
    7. Battiston, Stefano & Bonabeau, Eric & Weisbuch, Gérard, 2003. "Decision making dynamics in corporate boards," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 322(C), pages 567-582.
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    Cited by:

    1. Carlo Drago & Roberto Ricciuti & Paolo Santella, 2015. "An Attempt to Disperse the Italian Interlocking Directorship Network: Analyzing the Effects of the 2011 Reform," Working Papers 2015.82, Fondazione Eni Enrico Mattei.
    2. Yu-En Lin & Jia-Qi Yu & Hsiang-Hsuan Chih & Kung-Cheng Ho, 2022. "Near is more: learning efficiency in research and development innovation among interlocking firms," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-30, December.
    3. Battaggion, Maria Rosa & Cerasi, Vittoria, 2020. "Strategic interlocking directorates," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 85-101.
    4. Maria Rosa Battaggion & Vittoria Cerasi, 2018. "Endogenous interlocking directorates," Working Papers 380, University of Milano-Bicocca, Department of Economics, revised 01 May 2018.
    5. Carlo Drago & Livia Amidani Aliberti & Davide Carbonai, 2014. "Measuring Gender Differences in Information Sharing Using Network Analysis: the Case of the Austrian Interlocking Directorship Network in 2009," Working Papers 2014.61, Fondazione Eni Enrico Mattei.

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