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Bootstrapping the Gini Index of the Network Degree: An Application for Italian Corporate Governance

Author

Listed:
  • Carlo Drago

    (Department of Economics (University of Verona))

  • Roberto Ricciuti

    (Department of Economics (University of Verona))

Abstract

We propose a new approach based on bootstrapping to compare complex networks. This is an important task when we wish to compare the effect of a (policy) shock on the structure of a network. The bootstrap test compares two values of the Gini index, and the test is performed on the difference between them. The application is based on the interlocking directorship network. At the director level, Italian corporate governance is characterized by the widespread occurrence of interlocking directorates. Article 36 of Law 214/2011 prohibited interlocking directorates in the financial sector. We compare the interlocking directorship networks in 2009 (before the reform) with 2012 (after the reform) and find evidence of an asymmetric effect of the reform on the network centrality of the different companies but no significant effects on Gini indices.

Suggested Citation

  • 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.
    • Handle: RePEc:ver:wpaper:05/2019
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    References listed on IDEAS

    as
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    2. Michelangelo Vasta & Carlo Drago & Roberto Ricciuti & Alberto Rinaldi, 2017. "Reassessing the bank–industry relationship in Italy, 1913–1936: a counterfactual analysis," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 11(2), pages 183-216, May.
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    10. Lucia Bellenzier & Rosanna Grassi, 2014. "Interlocking directorates in Italy: persistent links in network dynamics," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(2), pages 183-202, October.
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    More about this item

    Keywords

    Complex Networks; Gini Index; Bootstrap Method;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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