Indirect Control of Corporations: Analysis and Simulations
DOI:
https://doi.org/10.7494/dmms.2017.11.1-2.31Keywords:
corporate shareholding analysis, cooperative game theory, direct and indirect control, financial and economic modeling, power indicesAbstract
This paper is devoted to indirect control in corporate shareholding networks. This topic is important in financial economics. Since shareholding size does not actually reflect an investor’s power-control in corporate shareholding networks, diverse approaches to measuring the control-power of investors were proposed. We focuses in particular on a game-theoretical approach, namely on the model of Denti and Prati (2001) and its implementation to control sharing analysis and simulation in shareholding networks thanks to the computer program “Control Sharing Simulation.”
References
Bajuri N.H., Chakravarty S., Hashim N.H., 2013. Analysis of Corporate Control: How Good is the Straffin Index?, Matematika, 29(1b), 129–140.
Bajuri N.H., Chakravarty S., Hashim N.H., 2014. Analysis of corporate control: can the voting power index outshine shareholding size?, Asian Academy of Management Journal of Accounting and Finance, 10(1), 75–94.
Banzhaf J.F., 1965. Weighted voting doesn’t work. A mathematical analysis, Rutgers Law Review, 19, 317–343.
Bertini C., Freixas J., Gambarelli G., Stach I., 2013. Comparing power indices. In V. Fragnelli and G. Gambarelli (Eds.) International Game Theory Review 15(2),1340004-1 – 1340004-19.
Bertini C., Stach I., 2015. On public values and power indices, Decision Making in Manufacturing and Services, 9(1), 9–25.
Bertini C., Mercik J., Stach I., 2016. Indirect control and power, Operations Research and Decisions, 26(2), 7–30.
Braham M., Steffen F., 2003. A priori voting power in hierarchical organization. Presented at European Public Choice Society Conference, September 25-28. Aarhus, Denmark. Retrieved February 2017 from https://www.researchgate.net/publication/229052885_A_PRIORI_
VOTING_POWER_IN_HIERARCHICAL_ORGANIZATIONS.
Crama Y, Leruth L., 2007. Control and voting power in corporate networks: concepts and computational aspects, European Journal of Operational Research, 178, 879–893.
Crama Y, Leruth L., 2013. Power indices and the measurement of control in corporate structures, International Game Theory Review, 15(3), 1–15.
Denti E, Prati N., 2001. An algorithm for winning coalitions in indirect control of corporations, Decisions in Economics and Finance, 24, 153–158.
Denti E, Prati N., 2004. Relevance of winning coalitions in indirect control of corporations, Theory and Decision, 56, 183–192.
Gambarelli G, Owen G., 1994. Indirect control of corporations, International Journal of Game Theory, 23, 287–30.
Hu X., Shapley L.S., 2003a. On authority distributions in organizations: equilibrium. Games and Economic Behavior, 45, 132–152.
Hu X., Shapley L.S., 2003b. On authority distributions in organizations: controls, Games and Economic Behavior, 45, 153–170.
Johnston R.J., 1978. On the measurement of power. Some reactions to Lawer, Environment and Planning A, 10, 907–914.
Karos D, Peters H., 2015. Indirect control and power in mutual control structures, Games and Economic Behavior, 92, 150–165.
Kołodziej M., 2011. Indirect control of corporations: analysis of models and their computer implementation, Master thesis. thesis promoter:
Izabella Stach. AGH University of Science and Technology, Faculty of Management.
Kołodziej M., Stach I., 2016. Control sharing analysis and simulation. In T. Sawik (Ed.) Conference Proceedings: ICIL 2016: 13th International Conference on Industrial Logistics, 28 September – 1 October, Zakopane, Poland, 101–108. AGH University of Science and Technology.
Krause S.M., Peixoto T.P., Bornholdt S., 2013. Spontaneous Centralization of Control in a Network of Company Ownerships, PLoS ONE, 8(12): e80303. doi:10.1371/journal.pone.0080303. Retrieved January 2016 from http://journals.plos.org/plosone/article?id=10.1371/
journal.pone.0080303.
Mercik J., Łobos K., 2016. Index of implicit power as a measure of reciprocal ownership, Springer Lecture Notes in Computer Science 9760, 132–145.
Penrose L.S., 1946. The elementary statistics of majority voting, Journal of the Royal Statistical Society, 109, 53–57.
Penrose L.S., 1952. On the objective study of crowd behaviour, H.K. Lewis Co., London.
Shapley L.S., Shubik M., 1954. A method for evaluating the distributions of power in a committee system, American Political Science Review, 48, 787–792.
Stach I., 2011. Shapley-Shubik index. In K. Dowding (Ed.) Encyclopedia of Power, 603–606, SAGE Publications, Los Angeles.
Stach, I. (2016), Power Measures and Public Goods. In N.T. Nguyen, R. Kowalczyk, and J. Mercik (Eds.): Transactions on Computational Collective Intelligence XXIII, Volume 9760 of the series Lecture Notes in Computer Science, 99–110.
Straffin P.D., 1977. Homogeneity, independence, and power indices, Public Choice, 30, 107–118.
Straffin P.D., 1988. The Shapley–Shubik and Banzhaf power indices as probabilities. In A.E. Roth (Ed.) Shapley Value, Cambridge University Press, Cambridge.
Straffin P.D., 1994. Power and stability in politics. In R.J. Aumann and S. Hart (Eds.) Handbook Game Theory, Elsevier Science.
Turnovec F., 1999. Privatization, ownership structure and transparency: how to measure the true involvement of the state, European Journal of Political Economy, 15, 605–618.
Vitali S., Glattfelder J.B., Battiston S. 2011. The network of global corporate control. PLoS ONE, 6: e25995. Retrieved January 2017 from http://dx.doi.org/10.1371/journal.pone.0025995.
Van den Brink R., Steffen F., 2008. Positional power in hierarchies. In M. Braham and F. Steffen (Eds) Power, Freedom, and Voting, 57–8, Springer, Berlin, Heidelberg.
Downloads
Published
How to Cite
Issue
Section
License
Remeber to prepeare, sign and scan copyright statement
The content of the journal is freely available according to the Creative Commons License Attribution 4.0 International (CC BY 4.0)
