Ownership Network and Firm Growth: What Do Five Million Companies Tell About Chinese Economy

How do co‐shareholding networks affect negative media coverage? Evidence from China

“…There are also some limitations to this paper. First, in this paper, we focus only on degree centrality and structural holes in co‐shareholding networks and do not examine how other network positions, such as network clusters (Li, Wang, et al, 2021) and eigenvector centrality (Allen et al, 2019), might also affect media coverage. Second, we observe only whether the co‐shareholding network could influence aggregate media coverage.…”

Network regression and supervised centrality estimation

“…The collection of the agents and their relationships is usually represented by a network. One extremely influential concept of networks is the agents' positions, because they can induce a wide range of behaviors, including individuals' decisions on education and human capital investment (Jackson et al, 2017), information sharing and advertisement (Banerjee et al, 2019, Breza and, coalition for exchange or cooperation (Elliott and Golub, 2019), firms' investment decision-making (Allen et al, 2019), the identification of banks that are too-connected-to-fail (Gofman, 2017), and stock returns (Ahern, 2013, Richmond, 2019.…”

“…An agent's position or importance is usually captured by the so-called centrality, which measures how central the agent is in comparison to the others in a network. Since the position induces the agent's behavior and thus shapes certain outcomes, the network centrality is often used as an intermediary to measure the network effects on the outcome of interest (Ahern, 2013, Shao et al, 2018, Richmond, 2019, Allen et al, 2019, Banerjee et al, 2019, Bovet and Makse, 2019. There are many kinds of definitions of centrality (Jackson, 2010, Kolaczyk, 2010, among which we focus on the hub and authority centralities (Kleinberg, 1999), of which the eigenvector centrality is a special case.…”

“…On one hand, in the presence of noisy network generation, there are many empirical studies (Lakhina et al, 2003, Banerjee et al, 2013, Breza et al, 2020, Zhu and Yang, 2020 and many that try to estimate or recover the true network without involving centrality (Butts, 2003, Handcock and Gile, 2010, Chandrasekhar and Lewis, 2011, Le et al, 2018, Newman, 2018, Rohe, 2019. On the other hand, many researchers focus on the network regression model with centralities while ignoring the noise of the centrality estimation inherited from the noise of the network (Ahern, 2013, Hochberg et al, 2007, Shao et al, 2018, Richmond, 2019, Allen et al, 2019, Liu, 2019, Banerjee et al, 2019, Bovet and Makse, 2019, Fogli and Veldkamp, 2021.…”

Special Deals from Special Investors: The Rise of State-Connected Private Owners in China

“…Brandt et al (2019) show that a growing fraction of firms are started by serial entrepreneurs. Allen et al (2019) construct a firm-to-firm equity investment network and estimate the effects of the firm's network. Although all the papers, including ours, shed light on the rapid growth of China's private sector from different perspectives, our focus is on the connection between state and private owners.…”