Network Shapley-Shubik Power Index: Measuring Indirect Influence in Shareholding Networks

Takayuki Mizuno; Shohei Doi; Shuhei Kurizaki

doi:10.1007/978-3-030-36683-4_49

Network Shapley-Shubik Power Index: Measuring Indirect Influence in Shareholding Networks

Takayuki Mizuno, Shohei Doi^*, Shuhei Kurizaki

^*Corresponding author for this work

School of Political Science and Economics

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

4 Citations (Scopus)

Abstract

Extending the Shapley-Shubik power index to networks, we propose a new measure and numerical method to calculate the indirect influence of investors on companies: Network power index (NPI). While the original index, reflecting the characteristics of majority vote in a shareholders meeting, measures the direct voting power of a shareholder, NPI captures not only an investor’s direct influence over a company but also indirect influence over this company’s subsidiary. Since NPI is often incalculable in a large network, we present a new method to numerically compute NPI: label propagation. Applying this method to the global shareholding networks in 2016, we find NPIs and raw vote shares dramatically diverge for some investors and this discrepancy suggests the difference in investment strategies between governments and private financial institutions.

Original language	English
Title of host publication	Complex Networks and Their Applications VIII - Volume 2 Proceedings of the 8th International Conference on Complex Networks and Their Applications COMPLEX NETWORKS 2019
Editors	Hocine Cherifi, Sabrina Gaito, José Fernendo Mendes, Esteban Moro, Luis Mateus Rocha
Publisher	Springer
Pages	611-619
Number of pages	9
ISBN (Print)	9783030366827
DOIs	https://doi.org/10.1007/978-3-030-36683-4_49
Publication status	Published - 2020
Event	8th International Conference on Complex Networks and their Applications, COMPLEX NETWORKS 2019 - Lisbon, Portugal Duration: 2019 Dec 10 → 2019 Dec 12

Publication series

Name	Studies in Computational Intelligence
Volume	882 SCI
ISSN (Print)	1860-949X
ISSN (Electronic)	1860-9503

Conference

Conference	8th International Conference on Complex Networks and their Applications, COMPLEX NETWORKS 2019
Country/Territory	Portugal
City	Lisbon
Period	19/12/10 → 19/12/12

Keywords

Complex networks analysis
Indirect control
Shareholding networks
The Shapley-Shubik power index

ASJC Scopus subject areas

Artificial Intelligence

Access to Document

10.1007/978-3-030-36683-4_49

Cite this

Mizuno, T., Doi, S., & Kurizaki, S. (2020). Network Shapley-Shubik Power Index: Measuring Indirect Influence in Shareholding Networks. In H. Cherifi, S. Gaito, J. F. Mendes, E. Moro, & L. M. Rocha (Eds.), Complex Networks and Their Applications VIII - Volume 2 Proceedings of the 8th International Conference on Complex Networks and Their Applications COMPLEX NETWORKS 2019 (pp. 611-619). (Studies in Computational Intelligence; Vol. 882 SCI). Springer. https://doi.org/10.1007/978-3-030-36683-4_49

Network Shapley-Shubik Power Index: Measuring Indirect Influence in Shareholding Networks. / Mizuno, Takayuki; Doi, Shohei; Kurizaki, Shuhei.
Complex Networks and Their Applications VIII - Volume 2 Proceedings of the 8th International Conference on Complex Networks and Their Applications COMPLEX NETWORKS 2019. ed. / Hocine Cherifi; Sabrina Gaito; José Fernendo Mendes; Esteban Moro; Luis Mateus Rocha. Springer, 2020. p. 611-619 (Studies in Computational Intelligence; Vol. 882 SCI).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Mizuno, T, Doi, S & Kurizaki, S 2020, Network Shapley-Shubik Power Index: Measuring Indirect Influence in Shareholding Networks. in H Cherifi, S Gaito, JF Mendes, E Moro & LM Rocha (eds), Complex Networks and Their Applications VIII - Volume 2 Proceedings of the 8th International Conference on Complex Networks and Their Applications COMPLEX NETWORKS 2019. Studies in Computational Intelligence, vol. 882 SCI, Springer, pp. 611-619, 8th International Conference on Complex Networks and their Applications, COMPLEX NETWORKS 2019, Lisbon, Portugal, 19/12/10. https://doi.org/10.1007/978-3-030-36683-4_49

Mizuno T, Doi S, Kurizaki S. Network Shapley-Shubik Power Index: Measuring Indirect Influence in Shareholding Networks. In Cherifi H, Gaito S, Mendes JF, Moro E, Rocha LM, editors, Complex Networks and Their Applications VIII - Volume 2 Proceedings of the 8th International Conference on Complex Networks and Their Applications COMPLEX NETWORKS 2019. Springer. 2020. p. 611-619. (Studies in Computational Intelligence). doi: 10.1007/978-3-030-36683-4_49

Mizuno, Takayuki ; Doi, Shohei ; Kurizaki, Shuhei. / Network Shapley-Shubik Power Index : Measuring Indirect Influence in Shareholding Networks. Complex Networks and Their Applications VIII - Volume 2 Proceedings of the 8th International Conference on Complex Networks and Their Applications COMPLEX NETWORKS 2019. editor / Hocine Cherifi ; Sabrina Gaito ; José Fernendo Mendes ; Esteban Moro ; Luis Mateus Rocha. Springer, 2020. pp. 611-619 (Studies in Computational Intelligence).

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abstract = "Extending the Shapley-Shubik power index to networks, we propose a new measure and numerical method to calculate the indirect influence of investors on companies: Network power index (NPI). While the original index, reflecting the characteristics of majority vote in a shareholders meeting, measures the direct voting power of a shareholder, NPI captures not only an investor{\textquoteright}s direct influence over a company but also indirect influence over this company{\textquoteright}s subsidiary. Since NPI is often incalculable in a large network, we present a new method to numerically compute NPI: label propagation. Applying this method to the global shareholding networks in 2016, we find NPIs and raw vote shares dramatically diverge for some investors and this discrepancy suggests the difference in investment strategies between governments and private financial institutions.",

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author = "Takayuki Mizuno and Shohei Doi and Shuhei Kurizaki",

note = "Funding Information: This work was partially supported by JSPS KAKENHI Grant Numbers 18H03627 and 16H05904. Publisher Copyright: {\textcopyright} 2020, Springer Nature Switzerland AG.; 8th International Conference on Complex Networks and their Applications, COMPLEX NETWORKS 2019 ; Conference date: 10-12-2019 Through 12-12-2019",

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N2 - Extending the Shapley-Shubik power index to networks, we propose a new measure and numerical method to calculate the indirect influence of investors on companies: Network power index (NPI). While the original index, reflecting the characteristics of majority vote in a shareholders meeting, measures the direct voting power of a shareholder, NPI captures not only an investor’s direct influence over a company but also indirect influence over this company’s subsidiary. Since NPI is often incalculable in a large network, we present a new method to numerically compute NPI: label propagation. Applying this method to the global shareholding networks in 2016, we find NPIs and raw vote shares dramatically diverge for some investors and this discrepancy suggests the difference in investment strategies between governments and private financial institutions.

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Network Shapley-Shubik Power Index: Measuring Indirect Influence in Shareholding Networks

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