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Persistence in corporate networks

Author

Listed:
  • Matthias Raddant

    (Institute for the World Economy
    Kiel University)

  • Mishael Milaković

    (University of Bamberg)

  • Laura Birg

    (Georg-August-Universität Göttingen)

Abstract

We examine the bipartite graphs of German corporate boards in 1993, 1999 and 2005, focusing on their projections onto directors (the “personal” network) and onto companies (the “institutional” network). The novel feature here is our focus on the temporal evolution of the two projections. The personal networks exhibit cores of highly central directors who are densely connected among themselves, while the institutional networks show a persistent core of large corporations whose identity remains mostly the same. This results in the persistent presence of a core network of very large corporations, despite substantial turnover in the identity of directors and significant changes in Germany’s corporate governance during the investigated period. Our findings strongly suggest that core persistence originates from the board appointment decisions of the very largest corporations and is largely independent of personal destinies.

Suggested Citation

  • Matthias Raddant & Mishael Milaković & Laura Birg, 2017. "Persistence in corporate networks," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 12(2), pages 249-276, July.
    • Handle: RePEc:spr:jeicoo:v:12:y:2017:i:2:d:10.1007_s11403-015-0165-5
    DOI: 10.1007/s11403-015-0165-5
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    References listed on IDEAS

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    1. Mishael Milaković & Simone Alfarano & Thomas Lux, 2010. "The small core of the German corporate board network," Computational and Mathematical Organization Theory, Springer, vol. 16(2), pages 201-215, June.
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    Cited by:

    1. Matthias Raddant & Hiroshi Takahashi, 2022. "Corporate boards, interorganizational ties and profitability: the case of Japan," Empirical Economics, Springer, vol. 62(3), pages 1365-1406, March.
    2. Ricardo Giglio & Thomas Lux, 2021. "The Core of the Global Corporate Network," Networks and Spatial Economics, Springer, vol. 21(3), pages 681-705, September.
    3. Anindya S. Chakrabarti & Sanjay Moorjani, 2021. "Strategic Connections in a Hierarchical Society: Wedge Between Observed and Fundamental Valuations," Dynamic Games and Applications, Springer, vol. 11(3), pages 433-462, September.
    4. Raddant, Matthias & Takahashi, Hiroshi, 2019. "The Japanese corporate board network," Kiel Working Papers 2130, Kiel Institute for the World Economy (IfW Kiel).

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