An Attempt to Disperse the Italian Interlocking Directorship Network: Analyzing the Effects of the 2011 Reform
Date
13.10.2015
13.10.2015
Authors
Carlo Drago (“Niccolò Cusano” University); Roberto Ricciuti (University of Verona, CESifo); Paolo Santella (ESMA)
JEL Code
C33, G34, G38, L14
C33, G34, G38, L14
Keywords:
Interlocking Directorships, Corporate Governance, Community Detection, Social Networks
Interlocking Directorships, Corporate Governance, Community Detection, Social Networks
Publisher
Economy and Society
Economy and Society
The purpose of this paper is to analyze the effects on the Italian directorship network of the corporate governance reform that was introduced in Italy in 2011 to prevent interlocking directorships in the financial sector. Interlocking directorships are important communication channels among companies and may have anticompetitive effect. We apply community detection techniques to the analysis of the networks in 2009 and 2012 to ascertain the effect of the reform. We find that, although the number of interlocking directorships decreases in 2012, the reduction takes place mainly at the periphery of the network whereas the network core is stable, allowing the most connected companies to keep their strategic position.
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Suggested citation: Drago, C., Ricciuti, R., P. Santella, (2015), ”n Attempt to Disperse the Italian Interlocking Directorship Network: Analyzing the Effects of the 2011 Reform’, Nota di Lavoro 82.2015, Milan, Italy: Fondazione Eni Enrico Mattei