On the topological properties of the cross-shareholding networks of listed companies in China: Taking shareholdersメ cross-shareholding relationships into account

Shareholders are the owners of listed companies, and their relationships can directly affect the structure of the stock market. In this paper, we analyze the topological properties and evolution of the cross-shareholding networks of listed companies in the past 5 years in China from 2007 to 2011, an infrequently considered topic, by taking shareholders’ cross-shareholding relationships into account. This analysis arrives at a deeper insight into the inner characteristics of China’s stock market. We find that the cross-shareholding networks of listed companies with shareholders’ cross-shareholding relationships display statistical features that reveal the stock market’s complex relationships more precisely. In particular, the results show that when the shareholders’ cross-shareholding relationships are considered, first, the In-degree and Out-degree of the cross-shareholding networks followpower-lawdistribution and the R2 of the linear regression analysis of the cumulative degree distribution is relatively higher; second, the modularity of the communities is larger; finally, both the number of members of top-ranked communities and the number of communities that have a large number of members are larger than those of which only considering the relationships between shareholders and listed companies are taken into account. Such cross-shareholding networks analysis taking shareholders’ crossshareholding relations into account would be a helpful tool for supervisory departments and for stock market researchers to grasp the inner cross-shareholding relationships of listed companies in China, and it will be also helpful for the further researches about the ‘‘agent problems’’ in the stock markets from a whole point of view. © 2014 Elsevier B.V. All rights reserved. ∗ Correspondence to: No. 213, 4th Building, No. 29, Xueyuan Road, Beijing 100083, China. Tel.: +86 01082323783; fax: +86 01082321783. E-mail address: [email protected] (H. An). http://dx.doi.org/10.1016/j.physa.2014.03.041 0378-4371/© 2014 Elsevier B.V. All rights reserved. H. Li et al. / Physica A 406 (2014) 80–88 81