2020 |
Valeeva, D; Heemskerk, E M; Takes, F W The duality of firms and directors in board interlock networks: A relational event modeling approach Journal Article Social Networks, 62 , pp. 68-79, 2020. Abstract | Links | BibTeX | Tags: corporate networks, elites, interlocking directorates, relational event modeling @article{Valeeva2020, title = {The duality of firms and directors in board interlock networks: A relational event modeling approach}, author = {D Valeeva and E M Heemskerk and F W Takes}, url = {https://www.sciencedirect.com/science/article/pii/S0378873320300186?}, doi = {https://doi.org/10.1016/j.socnet.2020.02.009}, year = {2020}, date = {2020-03-11}, journal = {Social Networks}, volume = {62}, pages = {68-79}, abstract = {The long tradition of scholarly work on corporate interlocks has left us with competing theoretical frameworks on the causes of interlock networks. Board interlocks are studied either as means to overcome the resource dependence of corporations or as a group cohesion mechanism of business elites. This contrast is due to an empirical divide of the literature where either the firms or the individuals are considered as decision-making bodies. In systematically ignoring the agency of the other group of actors, these literatures suffer from both theoretical and empirical biases in understanding the drivers of new interlocks. In this paper, we employ a relational event modeling technique that allows us to overcome this problem. The analysis of board appointments in Denmark demonstrates how in fact both personal and corporate considerations simultaneously drive the evolution of the corporate networks. The study of the duality of actors is essential for understanding the causes and consequences of corporate networks across time and space.}, keywords = {corporate networks, elites, interlocking directorates, relational event modeling}, pubstate = {published}, tppubtype = {article} } The long tradition of scholarly work on corporate interlocks has left us with competing theoretical frameworks on the causes of interlock networks. Board interlocks are studied either as means to overcome the resource dependence of corporations or as a group cohesion mechanism of business elites. This contrast is due to an empirical divide of the literature where either the firms or the individuals are considered as decision-making bodies. In systematically ignoring the agency of the other group of actors, these literatures suffer from both theoretical and empirical biases in understanding the drivers of new interlocks. In this paper, we employ a relational event modeling technique that allows us to overcome this problem. The analysis of board appointments in Denmark demonstrates how in fact both personal and corporate considerations simultaneously drive the evolution of the corporate networks. The study of the duality of actors is essential for understanding the causes and consequences of corporate networks across time and space. |
Fichtner, J; Heemskerk, E M; Petry, J The Conversation 2020. Links | BibTeX | Tags: capital flows, climate crisis, index funds, index providers, passive asset management, private authority, stock market indices @online{Fichtner2020, title = {Three financial firms could change the direction of the climate crisis – and few people have any idea}, author = {J Fichtner and E M Heemskerk and J Petry}, url = {https://theconversation.com/three-financial-firms-could-change-the-direction-of-the-climate-crisis-and-few-people-have-any-idea-131869}, year = {2020}, date = {2020-02-24}, organization = {The Conversation}, keywords = {capital flows, climate crisis, index funds, index providers, passive asset management, private authority, stock market indices}, pubstate = {published}, tppubtype = {online} } |
Fichtner, J; Heemskerk, E M; Petry, J Index funds might sound boring. But who decides which countries and companies to include? Online The Washington Post 2020. Abstract | Links | BibTeX | Tags: capital flows, index funds, index providers, passive asset management, private authority, stock market indices @online{FichtnerHeemskerkPetry2020, title = {Index funds might sound boring. But who decides which countries and companies to include?}, author = {J Fichtner and E M Heemskerk and J Petry}, url = {https://www.washingtonpost.com/politics/2020/01/08/index-funds-might-sound-boring-who-decides-which-countries-companies-include/}, year = {2020}, date = {2020-01-08}, organization = {The Washington Post}, abstract = {Index providers wield a lot of power in global finance — and that raises big political questions.}, keywords = {capital flows, index funds, index providers, passive asset management, private authority, stock market indices}, pubstate = {published}, tppubtype = {online} } Index providers wield a lot of power in global finance — and that raises big political questions. |
Pisani, Niccolo; Garcia-Bernardo, Javier; Heemskerk, Eelke Does it pay to be a multinational? A large-sample, cross-national replication assessing the multinationality--performance relationship Journal Article Strategic Management Journal, 41 (1), pp. 152–172, 2020. Abstract | Links | BibTeX | Tags: @article{pisani2020does, title = {Does it pay to be a multinational? A large-sample, cross-national replication assessing the multinationality--performance relationship}, author = {Niccolo Pisani and Javier Garcia-Bernardo and Eelke Heemskerk}, url = {https://onlinelibrary.wiley.com/doi/full/10.1002/smj.3087}, doi = {10.1002/smj.3087}, year = {2020}, date = {2020-01-01}, journal = {Strategic Management Journal}, volume = {41}, number = {1}, pages = {152--172}, publisher = {John Wiley & Sons, Ltd. Chichester, UK}, abstract = { Research Summary Does it pay to be a multinational? Despite decades of empirical research, we still do not know. We undertake a large‐sample, cross‐national replication of Lu and Beamish (2004) and Berry and Kaul's (2016) works to examine whether the multinationality–performance relationship is S‐shaped in a 2009–2016 panel of 889,865 firm‐year observations. Using a two‐stage least squares fixed‐effects model that accounts for endogeneity on a subsample of 32,835 multinationals from 64 countries, we find no evidence of an S‐shaped relationship; nor do we see it in any of the single‐country contexts. Our results show no evidence of any within‐firm effect of multinationality on performance, highlighting the need for more contextually‐grounded research focused on explaining between‐firm effects to advance our theoretical and empirical understanding of the multinationality‐performance relationship. Managerial Summary We replicate two studies that examined the relationship between a firm's multinationality and its performance. Lu and Beamish (2004) found evidence of an S‐shaped relationship—with performance first decreasing, then increasing, then decreasing again as firms expanded abroad—in a sample of Japanese firms; Berry and Kaul (2016) found no evidence of an S‐shaped pattern in a sample of U.S. multinationals. We test for the same relationship using data from nearly 250,000 firms based in over 100 countries from 2009 to 2016 and find no evidence of an S‐shaped pattern or of any effect of multinationality. Our study thus adds substantial evidence to the one shown by Berry and Kaul (2016), emphasizing the need to focus on how contextual differences influence the multinationality–performance relationship. }, keywords = {}, pubstate = {published}, tppubtype = {article} } Research Summary Does it pay to be a multinational? Despite decades of empirical research, we still do not know. We undertake a large‐sample, cross‐national replication of Lu and Beamish (2004) and Berry and Kaul's (2016) works to examine whether the multinationality–performance relationship is S‐shaped in a 2009–2016 panel of 889,865 firm‐year observations. Using a two‐stage least squares fixed‐effects model that accounts for endogeneity on a subsample of 32,835 multinationals from 64 countries, we find no evidence of an S‐shaped relationship; nor do we see it in any of the single‐country contexts. Our results show no evidence of any within‐firm effect of multinationality on performance, highlighting the need for more contextually‐grounded research focused on explaining between‐firm effects to advance our theoretical and empirical understanding of the multinationality‐performance relationship. Managerial Summary We replicate two studies that examined the relationship between a firm's multinationality and its performance. Lu and Beamish (2004) found evidence of an S‐shaped relationship—with performance first decreasing, then increasing, then decreasing again as firms expanded abroad—in a sample of Japanese firms; Berry and Kaul (2016) found no evidence of an S‐shaped pattern in a sample of U.S. multinationals. We test for the same relationship using data from nearly 250,000 firms based in over 100 countries from 2009 to 2016 and find no evidence of an S‐shaped pattern or of any effect of multinationality. Our study thus adds substantial evidence to the one shown by Berry and Kaul (2016), emphasizing the need to focus on how contextual differences influence the multinationality–performance relationship. |
van Kuppevelt, Dafne E; Bakhshi, Rena; Heemskerk, Eelke M; Takes, Frank W Community membership consistency in corporate board interlock networks Journal Article arXiv, (2008.00745), 2020. Abstract | Links | BibTeX | Tags: @article{van2020community, title = {Community membership consistency in corporate board interlock networks}, author = {Dafne E van Kuppevelt and Rena Bakhshi and Eelke M Heemskerk and Frank W Takes}, url = {https://arxiv.org/abs/2008.00745}, year = {2020}, date = {2020-01-01}, journal = {arXiv}, number = {2008.00745}, abstract = {Community detection is a well established method for studying the meso scale structure of social networks. Applying a community detection algorithm results in a division of a network into communities that is often used to inspect and reason about community membership of specific nodes. This micro level interpretation step of community structure is a crucial step in typical social science research. However, the methodological caveat in this step is that virtually all modern community detection methods are non-deterministic and based on randomization and approximated results. This needs to be explicitly taken into consideration when reasoning about community membership of individual nodes. To do so, we propose a metric of \emph{community membership consistency}, that provides node-level insights in how reliable the placement of that node into a community really is. In addition, it enables us to distinguish the \emph{community core} members of a community. The usefulness the proposed metrics is demonstrated on corporate board interlock networks, in which weighted links represent shared senior level directors between firms. Results suggest that the community structure of global business groups is centered around persistent communities consisting of core countries tied by geographical and cultural proximity. In addition, we identify fringe countries that appear to associate with a number of different global business communities. }, keywords = {}, pubstate = {published}, tppubtype = {article} } Community detection is a well established method for studying the meso scale structure of social networks. Applying a community detection algorithm results in a division of a network into communities that is often used to inspect and reason about community membership of specific nodes. This micro level interpretation step of community structure is a crucial step in typical social science research. However, the methodological caveat in this step is that virtually all modern community detection methods are non-deterministic and based on randomization and approximated results. This needs to be explicitly taken into consideration when reasoning about community membership of individual nodes. To do so, we propose a metric of emph{community membership consistency}, that provides node-level insights in how reliable the placement of that node into a community really is. In addition, it enables us to distinguish the emph{community core} members of a community. The usefulness the proposed metrics is demonstrated on corporate board interlock networks, in which weighted links represent shared senior level directors between firms. Results suggest that the community structure of global business groups is centered around persistent communities consisting of core countries tied by geographical and cultural proximity. In addition, we identify fringe countries that appear to associate with a number of different global business communities. |
Fichtner, Jan; Heemskerk, Eelke M The New Permanent Universal Owners: Index funds, patient capital, and the distinction between feeble and forceful stewardship Journal Article Economy and Society, 49 (4), pp. 493–515, 2020. Abstract | Links | BibTeX | Tags: @article{fichtner2020new, title = {The New Permanent Universal Owners: Index funds, patient capital, and the distinction between feeble and forceful stewardship}, author = {Jan Fichtner and Eelke M Heemskerk}, url = {https://www.tandfonline.com/doi/full/10.1080/03085147.2020.1781417}, doi = {10.1080/03085147.2020.1781417}, year = {2020}, date = {2020-01-01}, journal = {Economy and Society}, volume = {49}, number = {4}, pages = {493--515}, publisher = {Routledge}, abstract = {Fundamental change is happening in global finance – the shift from active management to index funds. This money mass-migration into index funds has far-reaching socio-economic consequences, as it has the potential to transform the nature of shareholder capitalism. We call BlackRock, Vanguard and State Street the ‘New Permanent Universal Owners’ that are invested indefinitely in thousands of firms. We provide novel findings on the combined ownership of the Big Three in European countries and Japan and investigate how this signals a shift away from the shareholder capitalism that has been dominant for the past three decades. We discuss the future role(s) of the New Permanent Universal Owners in corporate governance including whether they foster patient capital and introduce the distinction between feeble and forceful stewardship.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Fundamental change is happening in global finance – the shift from active management to index funds. This money mass-migration into index funds has far-reaching socio-economic consequences, as it has the potential to transform the nature of shareholder capitalism. We call BlackRock, Vanguard and State Street the ‘New Permanent Universal Owners’ that are invested indefinitely in thousands of firms. We provide novel findings on the combined ownership of the Big Three in European countries and Japan and investigate how this signals a shift away from the shareholder capitalism that has been dominant for the past three decades. We discuss the future role(s) of the New Permanent Universal Owners in corporate governance including whether they foster patient capital and introduce the distinction between feeble and forceful stewardship. |
2019 |
Petry, J; Fichtner, J; Heemskerk, E M Steering capital: the growing private authority of index providers in the age of passive asset management Journal Article Review of International Political Economy, 2019. Abstract | Links | BibTeX | Tags: capital flows, index funds, index providers, passive asset management, private authority, stock market indices @article{PetryFichtnerHeemskerk2019b, title = {Steering capital: the growing private authority of index providers in the age of passive asset management}, author = {J Petry and J Fichtner and E M Heemskerk}, url = {https://www.tandfonline.com/doi/full/10.1080/09692290.2019.1699147}, doi = {https://doi.org/10.1080/09692290.2019.1699147}, year = {2019}, date = {2019-12-10}, journal = {Review of International Political Economy}, abstract = {Since the global financial crisis, there is a massive shift of assets towards index funds. Rather than picking stocks, index funds replicate stock indices such as the S&P 500. But where do these indices actually come from? This paper analyzes the politico-economic role of index providers, a small group of highly profitable firms including MSCI, S&P DJI, and FTSE Russell, and develops a research agenda from an IPE perspective. We argue that these index providers have become actors that exercise growing private authority as they steer investments through the indices they create and maintain. While technical expertise is a precondition, their brand is the primary source of index provider authority, which is entrenched through network externalities. Rather than a purely technical exercise, constructing indices is inherently political. Which companies or countries are included into an index or excluded (i.e. receive investment in- or outflows) is based on criteria defined by index providers, thereby setting standards for corporate governance and investor access. Hence, in this new age of passive asset management index providers are becoming gatekeepers that exert de facto regulatory power and thus may have important effects on corporate governance and the economic policies of countries.}, keywords = {capital flows, index funds, index providers, passive asset management, private authority, stock market indices}, pubstate = {published}, tppubtype = {article} } Since the global financial crisis, there is a massive shift of assets towards index funds. Rather than picking stocks, index funds replicate stock indices such as the S&P 500. But where do these indices actually come from? This paper analyzes the politico-economic role of index providers, a small group of highly profitable firms including MSCI, S&P DJI, and FTSE Russell, and develops a research agenda from an IPE perspective. We argue that these index providers have become actors that exercise growing private authority as they steer investments through the indices they create and maintain. While technical expertise is a precondition, their brand is the primary source of index provider authority, which is entrenched through network externalities. Rather than a purely technical exercise, constructing indices is inherently political. Which companies or countries are included into an index or excluded (i.e. receive investment in- or outflows) is based on criteria defined by index providers, thereby setting standards for corporate governance and investor access. Hence, in this new age of passive asset management index providers are becoming gatekeepers that exert de facto regulatory power and thus may have important effects on corporate governance and the economic policies of countries. |
Ajdacic, L D; Heemskerk, E M; Garcia-Bernardo, J The Wealth Defence Industry: A large-scale study on accountancy firms as profit shifting facilitators Journal Article Working paper, 2019. Abstract | Links | BibTeX | Tags: Globalization, multiplex corporate networks, offshore, offshore financial centres @article{Ajdacic2019, title = {The Wealth Defence Industry: A large-scale study on accountancy firms as profit shifting facilitators}, author = {L D Ajdacic and E M Heemskerk and J Garcia-Bernardo}, url = {http://osf.io/preprints/socarxiv/8t5za}, year = {2019}, date = {2019-12-04}, journal = {Working paper}, abstract = {Corporations increasingly engage in innovative ‘tax planning strategies’ by shifting profits between jurisdictions. In response, states try to curtail such profit shifting activities while at the same time attempting to retain and attract multinational corporations. We aim to open up this dichotomy between states and corporations and argue that a wealth defence industry of professional service firms plays a crucial role as intermediaries. We investigate the subsidiary structure of 27,000 MNCs and show that clients of the Big Four accounting firms show systematically higher levels of aggressive tax planning strategies than clients of smaller accounting firms. We specify this effect for three distinct strategies and also uncover marked differences across countries. As such we provide empirical evidence for the systematic involvement of auditors as intermediaries in corporate wealth defence.}, keywords = {Globalization, multiplex corporate networks, offshore, offshore financial centres}, pubstate = {published}, tppubtype = {article} } Corporations increasingly engage in innovative ‘tax planning strategies’ by shifting profits between jurisdictions. In response, states try to curtail such profit shifting activities while at the same time attempting to retain and attract multinational corporations. We aim to open up this dichotomy between states and corporations and argue that a wealth defence industry of professional service firms plays a crucial role as intermediaries. We investigate the subsidiary structure of 27,000 MNCs and show that clients of the Big Four accounting firms show systematically higher levels of aggressive tax planning strategies than clients of smaller accounting firms. We specify this effect for three distinct strategies and also uncover marked differences across countries. As such we provide empirical evidence for the systematic involvement of auditors as intermediaries in corporate wealth defence. |
Babic, M; Garcia-Bernardo, J; Heemskerk, E M The rise of transnational state capital: state-led foreign investment in the 21st century Journal Article Review of International Political Economy, 27 (3), pp. 433-475, 2019. Abstract | Links | BibTeX | Tags: corporate power, foreign direct investment, Globalization, Ownership, state capitalism @article{Babic2019db, title = {The rise of transnational state capital: state-led foreign investment in the 21st century}, author = {M Babic and J Garcia-Bernardo and E M Heemskerk}, url = {https://www.tandfonline.com/doi/full/10.1080/09692290.2019.1665084}, doi = {https://doi.org/10.1080/09692290.2019.1665084}, year = {2019}, date = {2019-10-07}, journal = {Review of International Political Economy}, volume = {27}, number = {3}, pages = {433-475}, abstract = {Cross-border state-led investment is a recently rising, but understudied phenomenon of the global political economy. Existing research employs an anecdotal and case-oriented perspective that does not engage in a systemic, large-scale analysis of this rise of transnational state investment and its consequences for the transformation of state power in 21st century capitalism. We take a first step at filling this gap and offer two original contributions: Conceptually, we operationalize transnational foreign state-led investment on the basis of weighted ownership ties. These state capital ties are created by states as investors in corporations around the world. Empirically, we demonstrate our approach by setting up and analyzing the largest dataset on transnational state capital up to date. We show which different outward strategies states as owners employ and classify states according to their relative positions within the global network of transnational state capital. Our results illustrate a crucial aspect of the ongoing transformation of state power and sovereignty within globalization and we demonstrate how a careful and data-driven approach is able to identify different pathways and dimensions of this transformation.}, keywords = {corporate power, foreign direct investment, Globalization, Ownership, state capitalism}, pubstate = {published}, tppubtype = {article} } Cross-border state-led investment is a recently rising, but understudied phenomenon of the global political economy. Existing research employs an anecdotal and case-oriented perspective that does not engage in a systemic, large-scale analysis of this rise of transnational state investment and its consequences for the transformation of state power in 21st century capitalism. We take a first step at filling this gap and offer two original contributions: Conceptually, we operationalize transnational foreign state-led investment on the basis of weighted ownership ties. These state capital ties are created by states as investors in corporations around the world. Empirically, we demonstrate our approach by setting up and analyzing the largest dataset on transnational state capital up to date. We show which different outward strategies states as owners employ and classify states according to their relative positions within the global network of transnational state capital. Our results illustrate a crucial aspect of the ongoing transformation of state power and sovereignty within globalization and we demonstrate how a careful and data-driven approach is able to identify different pathways and dimensions of this transformation. |
2018 |
Takes, F W; Kosters, W A; Witte, B; Heemskerk, E M Multiplex network motifs as building blocks of corporate networks Journal Article Applied Network Science, Springer, 3 (39), pp. 1-22, 2018. Abstract | Links | BibTeX | Tags: corporate ownership, multiplex corporate networks, network motifs @article{Takes2018, title = {Multiplex network motifs as building blocks of corporate networks}, author = {F W Takes and W A Kosters and B Witte and E M Heemskerk}, url = {https://appliednetsci.springeropen.com/articles/10.1007/s41109-018-0094-z}, doi = {10.1007/s41109-018-0094-z}, year = {2018}, date = {2018-12-14}, journal = {Applied Network Science, Springer}, volume = {3}, number = {39}, pages = {1-22}, abstract = {In corporate networks, firms are connected through links of corporate ownership and shared directors, connecting the control over major economic actors in our economies in meaningful and consequential ways. Most research thus far focused on the connectedness of firms as a result of one particular link type, analyzing node-specific metrics or global network-based methods to gain insights in the modelled corporate system. In this paper, we aim to understand multiplex corporate networks with multiple types of connections, specifically investigating the network’s essential building blocks: multiplex network motifs. Motifs, which are small subgraph patterns occurring at significantly higher frequencies than in similar random networks, have demonstrated their usefulness in understanding the structure of many types of real-world networks. However, detecting motifs in multiplex networks is nontrivial for two reasons. First of all, there are no out-of-the-box subgraph enumeration algorithms for multiplex networks. Second, existing null models to test network motif significance, are unable to incorporate the interlayer dependencies in the multiplex network. We solve these two issues by introducing a layer encoding algorithm that incorporates the multiplex aspect in the subgraph enumeration phase. In addition, we propose a null model that is able to preserve the interlayer connectedness, while taking into account that one of the link types is actually the result of a projection of an underlying bipartite network. The experimental section considers the corporate network of Germany, in which tens of thousands of firms are connected through several hundred thousand links. We demonstrate how incorporating the multiplex aspect in motif detection is able to reveal new insights that could not be obtained by studying only one type of relationship. In a general sense, the motifs reflect known corporate governance practices related to the monitoring of investments and the concentration of ownership. A substantial fraction of the discovered motifs is typical for an industrialized country such as Germany, whereas others seem specific for certain economic sectors. Interestingly, we find that motifs involving financial firms are over-represented amongst the larger and more complex motifs. This demonstrates the prominent role of the financial sector in Germany’s largely industry-oriented corporate network.}, keywords = {corporate ownership, multiplex corporate networks, network motifs}, pubstate = {published}, tppubtype = {article} } In corporate networks, firms are connected through links of corporate ownership and shared directors, connecting the control over major economic actors in our economies in meaningful and consequential ways. Most research thus far focused on the connectedness of firms as a result of one particular link type, analyzing node-specific metrics or global network-based methods to gain insights in the modelled corporate system. In this paper, we aim to understand multiplex corporate networks with multiple types of connections, specifically investigating the network’s essential building blocks: multiplex network motifs. Motifs, which are small subgraph patterns occurring at significantly higher frequencies than in similar random networks, have demonstrated their usefulness in understanding the structure of many types of real-world networks. However, detecting motifs in multiplex networks is nontrivial for two reasons. First of all, there are no out-of-the-box subgraph enumeration algorithms for multiplex networks. Second, existing null models to test network motif significance, are unable to incorporate the interlayer dependencies in the multiplex network. We solve these two issues by introducing a layer encoding algorithm that incorporates the multiplex aspect in the subgraph enumeration phase. In addition, we propose a null model that is able to preserve the interlayer connectedness, while taking into account that one of the link types is actually the result of a projection of an underlying bipartite network. The experimental section considers the corporate network of Germany, in which tens of thousands of firms are connected through several hundred thousand links. We demonstrate how incorporating the multiplex aspect in motif detection is able to reveal new insights that could not be obtained by studying only one type of relationship. In a general sense, the motifs reflect known corporate governance practices related to the monitoring of investments and the concentration of ownership. A substantial fraction of the discovered motifs is typical for an industrialized country such as Germany, whereas others seem specific for certain economic sectors. Interestingly, we find that motifs involving financial firms are over-represented amongst the larger and more complex motifs. This demonstrates the prominent role of the financial sector in Germany’s largely industry-oriented corporate network. |
Fichtner, J; Heemskerk, E M The New Permanent Universal Owners: Index Funds, (Im)patient Capital, and the Claim of Long-termism Journal Article SSRN, pp. 1-30, 2018. Abstract | Links | BibTeX | Tags: asset managers, corporate governance, corporate ownership, index funds, shorttermism, varieties of capitalism @article{Fichter2019, title = {The New Permanent Universal Owners: Index Funds, (Im)patient Capital, and the Claim of Long-termism}, author = {J Fichtner and E M Heemskerk}, url = {https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3321597}, year = {2018}, date = {2018-11-13}, journal = {SSRN}, pages = {1-30}, abstract = {Fundamental change is happening in asset management – the shift from actively managed funds to index funds. This money mass migration into index funds has far-reaching consequences, because it leads to a concentration of corporate ownership in the hands of the ‘Big Three’ asset managers. We call BlackRock, Vanguard, and State Street the ‘New Permanent Universal Owners’ as they are invested indefinitely in thousands of member firms of stock indexes. We provide novel findings on the combined ownership of the Big Three in 17 major stock indexes from nine countries. Furthermore, we shed light on the impact of index funds on the dichotomy between ‘patient’ and ‘impatient’ capital. The Big Three have proclaimed themselves champions of long-termism. We analyze their voting behavior in five countries concerning two proxies for corporate short-termism: share buybacks, and mergers and acquisitions. So far, they have not unambiguously acted as champions of long-termism.}, keywords = {asset managers, corporate governance, corporate ownership, index funds, shorttermism, varieties of capitalism}, pubstate = {published}, tppubtype = {article} } Fundamental change is happening in asset management – the shift from actively managed funds to index funds. This money mass migration into index funds has far-reaching consequences, because it leads to a concentration of corporate ownership in the hands of the ‘Big Three’ asset managers. We call BlackRock, Vanguard, and State Street the ‘New Permanent Universal Owners’ as they are invested indefinitely in thousands of member firms of stock indexes. We provide novel findings on the combined ownership of the Big Three in 17 major stock indexes from nine countries. Furthermore, we shed light on the impact of index funds on the dichotomy between ‘patient’ and ‘impatient’ capital. The Big Three have proclaimed themselves champions of long-termism. We analyze their voting behavior in five countries concerning two proxies for corporate short-termism: share buybacks, and mergers and acquisitions. So far, they have not unambiguously acted as champions of long-termism. |
van Kuppevelt, D E; Takes, F W; Heemskerk, E M Understanding evolving communities in transnational board interlock networks Inproceedings Proceedings of the 14th IEEE International Conference on e-Science, pp. 312-313, IEEE, 2018. Links | BibTeX | Tags: communities, networks, transnational board interlocks @inproceedings{vanKuppevelt2018, title = {Understanding evolving communities in transnational board interlock networks}, author = {D E van Kuppevelt and F W Takes and E M Heemskerk}, url = {https://ieeexplore.ieee.org/document/8588688}, doi = {10.1109/eScience.2018.00069}, year = {2018}, date = {2018-10-30}, booktitle = {Proceedings of the 14th IEEE International Conference on e-Science}, pages = {312-313}, publisher = {IEEE}, keywords = {communities, networks, transnational board interlocks}, pubstate = {published}, tppubtype = {inproceedings} } |
Heemskerk, E M; Leaver, A If this is capitalism, where are the price signals?: The glacial effects of passive investment Online SPERI, (Ed.): 2018. Abstract | Links | BibTeX | Tags: financial flows, index funds, passive investing @online{HeemskerkLeaver2018, title = {If this is capitalism, where are the price signals?: The glacial effects of passive investment}, author = {E M Heemskerk and A Leaver}, editor = {SPERI}, url = {http://speri.dept.shef.ac.uk/2018/09/03/if-this-is-capitalism-where-are-the-price-signals-the-glacial-effects-of-passive-investment/}, year = {2018}, date = {2018-09-03}, abstract = {In the 10 years since the 2008 crash, the ‘passive-aggressive’ tendencies of large index funds have reshaped how modern capitalism operates}, keywords = {financial flows, index funds, passive investing}, pubstate = {published}, tppubtype = {online} } In the 10 years since the 2008 crash, the ‘passive-aggressive’ tendencies of large index funds have reshaped how modern capitalism operates |
Babic, M; Heemskerk, E M; Fichtner, J Who is more powerful – states or corporations? Online The Conversation 2018. Abstract | Links | BibTeX | Tags: Globalization @online{statesorcorps, title = {Who is more powerful – states or corporations?}, author = {M Babic and E M Heemskerk and J Fichtner}, url = {http://theconversation.com/who-is-more-powerful-states-or-corporations-99616}, year = {2018}, date = {2018-07-10}, organization = {The Conversation}, abstract = {Who holds the power in international politics? Most people would probably say it’s the largest states in the global system. The current landscape of international relations seems to affirm this intuition: new Russian geopolitics, “America First” and Chinese state-led global expansion, among others, seem to put state power back in charge after decades of globalisation. Yet multinationals like Apple and Starbucks still wield phenomenal power. They oversee huge supply chains, sell products all over the world, and help mould international politics to their interests. In some respects, multinationals have governments at their beck and call – witness their consistent success at dodging tax payments. So when it comes to international politics, are states really calling the shots?}, keywords = {Globalization}, pubstate = {published}, tppubtype = {online} } Who holds the power in international politics? Most people would probably say it’s the largest states in the global system. The current landscape of international relations seems to affirm this intuition: new Russian geopolitics, “America First” and Chinese state-led global expansion, among others, seem to put state power back in charge after decades of globalisation. Yet multinationals like Apple and Starbucks still wield phenomenal power. They oversee huge supply chains, sell products all over the world, and help mould international politics to their interests. In some respects, multinationals have governments at their beck and call – witness their consistent success at dodging tax payments. So when it comes to international politics, are states really calling the shots? |
Fichtner, J Meet the New Owners of Corporate America Online Cambridge Core Blog 2018. Abstract | Links | BibTeX | Tags: Ownership @online{meetthenew, title = {Meet the New Owners of Corporate America}, author = {J Fichtner}, url = {http://blog.journals.cambridge.org/2018/05/23/meet-the-new-owners-of-corporate-america/?utm_source=Twitter&utm_medium=Hootsuite&utm_campaign=JMO%20May%2018}, year = {2018}, date = {2018-05-23}, journal = {Cambridge Core Blog}, organization = {Cambridge Core Blog}, abstract = {A seismic shift is going on in finance still largely unnoticed by the public. People and institutions are increasingly investing their money into index tracker funds instead of actively managed mutual funds. Index funds simply buy shares of all firms that are part of an index. Therefore, they can charge significantly lower fees to their investors — there is no well-paid fund manager that tries to beat the market. Besides low fees, they offer similar returns to active funds, as the latter have not been able to consistently beat major stock indexes, such as the S&P500. The scale of this money migration is astounding. Between 2008 and 2016, about US$1,200 billion left actively managed funds, while approximately US$1,400 billion moved into index funds.}, keywords = {Ownership}, pubstate = {published}, tppubtype = {online} } A seismic shift is going on in finance still largely unnoticed by the public. People and institutions are increasingly investing their money into index tracker funds instead of actively managed mutual funds. Index funds simply buy shares of all firms that are part of an index. Therefore, they can charge significantly lower fees to their investors — there is no well-paid fund manager that tries to beat the market. Besides low fees, they offer similar returns to active funds, as the latter have not been able to consistently beat major stock indexes, such as the S&P500. The scale of this money migration is astounding. Between 2008 and 2016, about US$1,200 billion left actively managed funds, while approximately US$1,400 billion moved into index funds. |
Heemskerk, E M; Young, K; Takes, F W; Cronin, B; Garcia-Bernardo, J; Popov, V; Winecoff, W K; Henriksen, L F; Laurin-Lamonthe, A The Promise and Perils of Using Big Data in the Study of Corporate Networks: Problems, Diagnostics and Fixes Journal Article Global Networks, 18 (1), pp. 3-32, 2018. Abstract | Links | BibTeX | Tags: @article{BigData, title = {The Promise and Perils of Using Big Data in the Study of Corporate Networks: Problems, Diagnostics and Fixes}, author = {E M Heemskerk and K Young and F W Takes and B Cronin and J Garcia-Bernardo and V Popov and W K Winecoff and L F Henriksen and A Laurin-Lamonthe}, url = {http://onlinelibrary.wiley.com/doi/10.1111/glob.12183/full}, doi = {10.1111/glob.12183}, year = {2018}, date = {2018-01-01}, journal = {Global Networks}, volume = {18}, number = {1}, pages = {3-32}, abstract = {Network data on connections between corporate actors and entities – for instance through co-ownership ties or elite social networks – are increasingly available to researchers interested in probing the many important questions related to the study of modern capitalism. Given the analytical challenges associated with the nature of the subject matter, variable data quality and other problems associated with currently available data on this scale, we discuss the promise and perils of using big corporate network data (BCND). We propose a standard procedure for helping researchers deal with BCND problems. While acknowledging that different research questions require different approaches to data quality, we offer a schematic platform that researchers can follow to make informed and intelligent decisions about BCND issues and address these through a specific work-flow procedure. For each step in this procedure, we provide a set of best practices for how to identify, resolve and minimize the BCND problems that arise.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Network data on connections between corporate actors and entities – for instance through co-ownership ties or elite social networks – are increasingly available to researchers interested in probing the many important questions related to the study of modern capitalism. Given the analytical challenges associated with the nature of the subject matter, variable data quality and other problems associated with currently available data on this scale, we discuss the promise and perils of using big corporate network data (BCND). We propose a standard procedure for helping researchers deal with BCND problems. While acknowledging that different research questions require different approaches to data quality, we offer a schematic platform that researchers can follow to make informed and intelligent decisions about BCND issues and address these through a specific work-flow procedure. For each step in this procedure, we provide a set of best practices for how to identify, resolve and minimize the BCND problems that arise. |
Fennema, M; Heemskerk, E M When Theory Meets Methods: The Naissance of Computer Assisted Corporate Interlock Research Journal Article Global Networks, 18 (1), pp. 81-104, 2018. Abstract | Links | BibTeX | Tags: @article{Naissance, title = {When Theory Meets Methods: The Naissance of Computer Assisted Corporate Interlock Research}, author = {M Fennema and E M Heemskerk}, url = {http://onlinelibrary.wiley.com/doi/10.1111/glob.12178/full}, doi = {10.1111/glob.12178}, year = {2018}, date = {2018-01-01}, journal = {Global Networks}, volume = {18}, number = {1}, pages = {81-104}, abstract = {In this article, we study the emergence of computer aided network analysis as an example of ‘Mertonian’ multiple discovery. Computer assisted quantitative network analysis emerged around 1970 and small groups of researchers in different universities, who were independent of each other and looking for the right concepts and computer programs to implement graph theory in social analysis, first applied it to corporate interlock networks. We show how mathematical graph theory provided a toolbox for systematic network analysis and that simultaneously in the Netherlands and the United States this toolbox found an application in the study of corporate power. A historical narrative covers the three main centres in which large-scale corporate network analysis emerged – Amsterdam, California and Stony Brook. For each centre, we provide a sketch of the people involved, the tools they used, and the motivations that brought them to this topic. Our analysis makes clear that one cannot understand the emergence of computer aided network analysis without considering the personal and often political motivations of those who engaged in the first board interlock studies. Insurgent students of political science and sociology pushed for a research agenda on corporate power and found support from scholars who were keen to develop innovative network analysis methods. Hence, corporate network analysis became a legitimate field of research.}, keywords = {}, pubstate = {published}, tppubtype = {article} } In this article, we study the emergence of computer aided network analysis as an example of ‘Mertonian’ multiple discovery. Computer assisted quantitative network analysis emerged around 1970 and small groups of researchers in different universities, who were independent of each other and looking for the right concepts and computer programs to implement graph theory in social analysis, first applied it to corporate interlock networks. We show how mathematical graph theory provided a toolbox for systematic network analysis and that simultaneously in the Netherlands and the United States this toolbox found an application in the study of corporate power. A historical narrative covers the three main centres in which large-scale corporate network analysis emerged – Amsterdam, California and Stony Brook. For each centre, we provide a sketch of the people involved, the tools they used, and the motivations that brought them to this topic. Our analysis makes clear that one cannot understand the emergence of computer aided network analysis without considering the personal and often political motivations of those who engaged in the first board interlock studies. Insurgent students of political science and sociology pushed for a research agenda on corporate power and found support from scholars who were keen to develop innovative network analysis methods. Hence, corporate network analysis became a legitimate field of research. |
Takes, Frank W; Kosters, Walter A; Witte, Boyd; Heemskerk, Eelke M Multiplex network motifs as building blocks of corporate networks Journal Article Applied network science, 3 (1), pp. 1–22, 2018. BibTeX | Tags: @article{takes2018multiplex, title = {Multiplex network motifs as building blocks of corporate networks}, author = {Frank W Takes and Walter A Kosters and Boyd Witte and Eelke M Heemskerk}, year = {2018}, date = {2018-01-01}, journal = {Applied network science}, volume = {3}, number = {1}, pages = {1--22}, publisher = {SpringerOpen}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, Eelke M Network analysis and the Amsterdam School Journal Article Transnational Capital and Class Fractions: The Amsterdam School Perspective Reconsidered, pp. 197, 2018. BibTeX | Tags: @article{heemskerk2018network, title = {Network analysis and the Amsterdam School}, author = {Eelke M Heemskerk}, year = {2018}, date = {2018-01-01}, journal = {Transnational Capital and Class Fractions: The Amsterdam School Perspective Reconsidered}, pages = {197}, publisher = {Routledge}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
2017 |
Garcia-Bernardo, J; Fichtner, J; Takes, F W; Heemskerk, E M Sinks and Conduits: Identifying Offshore Financial Centers by using Big Data Journal Article IFC Review, Economic Report (Winter 2017/ 18), pp. 61-63, 2017. Abstract | Links | BibTeX | Tags: @article{sectorresearch, title = {Sinks and Conduits: Identifying Offshore Financial Centers by using Big Data}, author = {J Garcia-Bernardo and J Fichtner and F W Takes and E M Heemskerk}, url = {https://corpnet.uva.nl/wp-content/uploads/IFC-Economic-Report.pdf}, year = {2017}, date = {2017-11-30}, journal = {IFC Review}, volume = {Economic Report}, number = {Winter 2017/ 18}, pages = {61-63}, abstract = {Th is article is based on J. Garcia-Bernardo, J. Fichtner, F.W. Takes and E.M. Heemskerk, ‘Uncovering Off shore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network’, Scientifi c Reports 7, article 6246, 2017. Th e research illustrates that ‘off shore’ jurisdictions are much more complex than the traditional notion of an island state secreting away cash. Th e University of Amsterdam researchers found that the off shore industry is in fact a complex network of fi nancial conduits, which involve many of the traditional ‘onshore’ centres.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Th is article is based on J. Garcia-Bernardo, J. Fichtner, F.W. Takes and E.M. Heemskerk, ‘Uncovering Off shore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network’, Scientifi c Reports 7, article 6246, 2017. Th e research illustrates that ‘off shore’ jurisdictions are much more complex than the traditional notion of an island state secreting away cash. Th e University of Amsterdam researchers found that the off shore industry is in fact a complex network of fi nancial conduits, which involve many of the traditional ‘onshore’ centres. |
Babic, M; Fichtner, J; Heemskerk, E M States versus Corporations: Rethinking the Power of Business in International Politics Journal Article The International Spectator: Italian Journal of International Affairs, 2017. Abstract | Links | BibTeX | Tags: @article{Statesb, title = {States versus Corporations: Rethinking the Power of Business in International Politics}, author = {M Babic and J Fichtner and E M Heemskerk}, url = {http://www.tandfonline.com/doi/full/10.1080/03932729.2017.1389151}, year = {2017}, date = {2017-11-16}, journal = {The International Spectator: Italian Journal of International Affairs}, abstract = {Over 25 years ago, Susan Strange urged IR scholars to include multinational corporations in their analysis. Within IR and IPE discussions, this was either mostly ignored or reflected in an empirically and methodologically unsatisfactory way. We reiterate Strange’s call by sketching a fine-grained theoretical and empirical approach that includes both states and corporations as juxtaposed actors that interact in transnational networks inherent to the contemporary international political economy. This realistic, juxtaposed, actor- and relations-centred perspective on state and corporate power in the global system is empirically illustrated by the example of the transnationalisation of state ownership.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Over 25 years ago, Susan Strange urged IR scholars to include multinational corporations in their analysis. Within IR and IPE discussions, this was either mostly ignored or reflected in an empirically and methodologically unsatisfactory way. We reiterate Strange’s call by sketching a fine-grained theoretical and empirical approach that includes both states and corporations as juxtaposed actors that interact in transnational networks inherent to the contemporary international political economy. This realistic, juxtaposed, actor- and relations-centred perspective on state and corporate power in the global system is empirically illustrated by the example of the transnationalisation of state ownership. |
Garcia-Bernardo, J; Fichtner, J; Takes, F W; Heemskerk, E M Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network Journal Article Scientific Reports, 7 (Article 6246), 2017. Abstract | Links | BibTeX | Tags: @article{Offshore2017, title = {Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network}, author = {J Garcia-Bernardo and J Fichtner and F W Takes and E M Heemskerk}, url = {https://www.nature.com/articles/s41598-017-06322-9}, doi = {10.1038/s41598-017-06322-9}, year = {2017}, date = {2017-07-24}, journal = {Scientific Reports}, volume = {7}, number = {Article 6246}, abstract = {Multinational corporations use highly complex structures of parents and subsidiaries to organize their operations and ownership. O shore Financial Centers (OFCs) facilitate these structures through low taxation and lenient regulation, but are increasingly under scrutiny, for instance for enabling tax avoidance. Therefore, the identi cation of OFC jurisdictions has become a politicized and contested issue. We introduce a novel data-driven approach for identifying OFCs based on the global corporate ownership network, in which over 98 million rms (nodes) are connected through 71 million ownership relations. This granular rm-level network data uniquely allows identifying both sink-OFCs and conduit- OFCs. Sink-OFCs attract and retain foreign capital while conduit-OFCs are attractive intermediate destinations in the routing of international investments and enable the transfer of capital without taxation. We identify 24 sink-OFCs. In addition, a small set of ve countries – the Netherlands, the United Kingdom, Ireland, Singapore and Switzerland – canalize the majority of corporate o shore investment as conduit-OFCs. Each conduit jurisdiction is specialized in a geographical area and there is signi cant specialization based on industrial sectors. Against the idea of OFCs as exotic small islands that cannot be regulated, we show that many sink and conduit-OFCs are highly developed countries.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Multinational corporations use highly complex structures of parents and subsidiaries to organize their operations and ownership. O shore Financial Centers (OFCs) facilitate these structures through low taxation and lenient regulation, but are increasingly under scrutiny, for instance for enabling tax avoidance. Therefore, the identi cation of OFC jurisdictions has become a politicized and contested issue. We introduce a novel data-driven approach for identifying OFCs based on the global corporate ownership network, in which over 98 million rms (nodes) are connected through 71 million ownership relations. This granular rm-level network data uniquely allows identifying both sink-OFCs and conduit- OFCs. Sink-OFCs attract and retain foreign capital while conduit-OFCs are attractive intermediate destinations in the routing of international investments and enable the transfer of capital without taxation. We identify 24 sink-OFCs. In addition, a small set of ve countries – the Netherlands, the United Kingdom, Ireland, Singapore and Switzerland – canalize the majority of corporate o shore investment as conduit-OFCs. Each conduit jurisdiction is specialized in a geographical area and there is signi cant specialization based on industrial sectors. Against the idea of OFCs as exotic small islands that cannot be regulated, we show that many sink and conduit-OFCs are highly developed countries. |
Garcia-Bernardo, J; Heemskerk, E M; Takes, F W; Fichtner, J These five countries are conduits for the world's biggest tax havens Online The Conversation 2017. Abstract | Links | BibTeX | Tags: @online{ConversationTax, title = {These five countries are conduits for the world's biggest tax havens}, author = {J Garcia-Bernardo and E M Heemskerk and F W Takes and J Fichtner}, url = {https://theconversation.com/these-five-countries-are-conduits-for-the-worlds-biggest-tax-havens-79555}, year = {2017}, date = {2017-07-24}, organization = {The Conversation}, abstract = {First came the Panama Papers, then the BahamasLeaks. Journalists continue to shed light on and raise a public outcry over the offshore financial centres that corporations use to reduce their tax bill – something that is still being challenged in court. A new study has now uncovered all the world’s corporate tax havens and, for the first time, revealed the intermediary countries that companies use to funnel their money into these places. Published on July 24 in the academic journal Scientific Reports, the paper Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network shows that offshore finance is not the exclusive business of exotic, far-flung places such as the Cayman Islands and Bermuda. The Netherlands and the United Kingdom also play a crucial – although a heretofore obscure – role in the tax-avoidance game, acting as conduits for corporate profits as they make their way to tax havens.}, keywords = {}, pubstate = {published}, tppubtype = {online} } First came the Panama Papers, then the BahamasLeaks. Journalists continue to shed light on and raise a public outcry over the offshore financial centres that corporations use to reduce their tax bill – something that is still being challenged in court. A new study has now uncovered all the world’s corporate tax havens and, for the first time, revealed the intermediary countries that companies use to funnel their money into these places. Published on July 24 in the academic journal Scientific Reports, the paper Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network shows that offshore finance is not the exclusive business of exotic, far-flung places such as the Cayman Islands and Bermuda. The Netherlands and the United Kingdom also play a crucial – although a heretofore obscure – role in the tax-avoidance game, acting as conduits for corporate profits as they make their way to tax havens. |
Heemskerk, E M Langetermijnoriëntatie en de opkomst van passieve investeerders Journal Article Economisch Statistische Berichten (ESB), 102 (4751), pp. 320-321, 2017. Abstract | Links | BibTeX | Tags: @article{ESBb, title = {Langetermijnoriëntatie en de opkomst van passieve investeerders}, author = {E M Heemskerk}, url = {https://esb.nu/esb/20029499/langetermijnorientatie-en-de-opkomst-van-passieve-investeerders}, year = {2017}, date = {2017-07-13}, journal = {Economisch Statistische Berichten (ESB)}, volume = {102}, number = {4751}, pages = {320-321}, abstract = {Passieve investeerders zijn de afgelopen jaren flinke gegroeid. BlackRock, Vanguard en State Street hebben nu belangen in de meeste beursgenoteerde bedrijven. Welke rol vervullen deze aandeelhouders en wat betekent dit voor het management?}, keywords = {}, pubstate = {published}, tppubtype = {article} } Passieve investeerders zijn de afgelopen jaren flinke gegroeid. BlackRock, Vanguard en State Street hebben nu belangen in de meeste beursgenoteerde bedrijven. Welke rol vervullen deze aandeelhouders en wat betekent dit voor het management? |
Heemskerk, E M Ligt het Rijnland nu in de VS? Lange termijn oriëntatie en passieve investeringsfondsen Journal Article Goed Bestuur & Toezicht, 13 (2), pp. 14-16, 2017. Abstract | Links | BibTeX | Tags: @article{Rijnland, title = {Ligt het Rijnland nu in de VS? Lange termijn oriëntatie en passieve investeringsfondsen}, author = {E M Heemskerk}, url = {http://heemskerk.socsci.uva.nl/pdfs/Ligt%20het%20Rijnland%20nu%20in%20de%20VS.pdf}, year = {2017}, date = {2017-06-16}, journal = {Goed Bestuur & Toezicht}, volume = {13}, number = {2}, pages = {14-16}, abstract = {Bedreigd door vijandige overnamepogingen roepen bestuurders van Nederlandse bedrijven en politici om beschermingsconstructies. Hun pleidooi voor de lange termijn lijkt wat hypocriet. De ongekende opkomst van Amerikaanse indexbeleggers verklaart wellicht meer. Enorme fondsen als Blackrock zijn op de lange termijn gericht en onderhouden veel contact met ‘hun’ ondernemingen.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Bedreigd door vijandige overnamepogingen roepen bestuurders van Nederlandse bedrijven en politici om beschermingsconstructies. Hun pleidooi voor de lange termijn lijkt wat hypocriet. De ongekende opkomst van Amerikaanse indexbeleggers verklaart wellicht meer. Enorme fondsen als Blackrock zijn op de lange termijn gericht en onderhouden veel contact met ‘hun’ ondernemingen. |
Shenkar, C; Heemskerk, E M; Fichtner, J The New Mandate Owners: Passive Asset Managers and the Decoupling of Corporate Ownership Journal Article Competition Policy International Antitrust Chronicle, Spring 2017 Volume 1 (3), pp. 51-57, 2017. Abstract | Links | BibTeX | Tags: corporate ownership, passive asset management @article{AntitrustChronicle, title = {The New Mandate Owners: Passive Asset Managers and the Decoupling of Corporate Ownership}, author = {C Shenkar and E M Heemskerk and J Fichtner}, url = {https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2988937}, year = {2017}, date = {2017-06-14}, journal = {Competition Policy International Antitrust Chronicle}, volume = {Spring 2017 Volume 1}, number = {3}, pages = {51-57}, abstract = {A major shift toward passively managed index funds in recent years has led to the re-concentration of corporate ownership in the hands of just three large asset management firms, the Big Three: BlackRock, Vanguard and State Street. We propose that this trend has re-structured ownership in capital markets. Adopting a contractual view to the corporate share, we re-define share holding and suggest that the New Mandate Owners in fact hold the essence of corporate power, as their aggregated positions capture the core element of the franchise of corporate voting.}, keywords = {corporate ownership, passive asset management}, pubstate = {published}, tppubtype = {article} } A major shift toward passively managed index funds in recent years has led to the re-concentration of corporate ownership in the hands of just three large asset management firms, the Big Three: BlackRock, Vanguard and State Street. We propose that this trend has re-structured ownership in capital markets. Adopting a contractual view to the corporate share, we re-define share holding and suggest that the New Mandate Owners in fact hold the essence of corporate power, as their aggregated positions capture the core element of the franchise of corporate voting. |
Fichtner, J; Heemskerk, E M; Garcia-Bernardo, J These three firms own corporate America Online The Conversation 2017. Abstract | Links | BibTeX | Tags: @online{ConversationFirms, title = {These three firms own corporate America}, author = {J Fichtner and E M Heemskerk and J Garcia-Bernardo}, url = {https://theconversation.com/these-three-firms-own-corporate-america-77072}, year = {2017}, date = {2017-05-10}, organization = {The Conversation}, abstract = {A fundamental change is underway in stock market investing, and the spin-off effects are poised to dramatically impact corporate America. In the past, individuals and large institutions mostly invested in actively managed mutual funds, such as Fidelity, in which fund managers pick stocks with the aim of beating the market. But since the financial crisis of 2008, investors have shifted to index funds, which replicate established stock indices, such as the S&P 500. The magnitude of the change is astounding: from 2007 to 2016, actively managed funds have recorded outflows of roughly US$1,200 billion, while index funds had inflows of over US$1,400 billion. In the first quarter of 2017, index funds brought in more than US$200 billion – the highest quarterly value on record.}, keywords = {}, pubstate = {published}, tppubtype = {online} } A fundamental change is underway in stock market investing, and the spin-off effects are poised to dramatically impact corporate America. In the past, individuals and large institutions mostly invested in actively managed mutual funds, such as Fidelity, in which fund managers pick stocks with the aim of beating the market. But since the financial crisis of 2008, investors have shifted to index funds, which replicate established stock indices, such as the S&P 500. The magnitude of the change is astounding: from 2007 to 2016, actively managed funds have recorded outflows of roughly US$1,200 billion, while index funds had inflows of over US$1,400 billion. In the first quarter of 2017, index funds brought in more than US$200 billion – the highest quarterly value on record. |
Fichtner, J; Heemskerk, E M; Garcia-Bernardo, J Hidden Power of the Big Three? Passive Index Funds, Re-Concentration of Corporate Ownership, and New Financial Risk Journal Article Business and Politics, 19 (2), pp. 298-326, 2017. Abstract | Links | BibTeX | Tags: @article{BigThree, title = {Hidden Power of the Big Three? Passive Index Funds, Re-Concentration of Corporate Ownership, and New Financial Risk}, author = {J Fichtner and E M Heemskerk and J Garcia-Bernardo}, url = {https://www.cambridge.org/core/journals/business-and-politics/article/hidden-power-of-the-big-three-passive-index-funds-reconcentration-of-corporate-ownership-and-new-financial-risk/30AD689509AAD62F5B677E916C28C4B6}, doi = {10.1017/bap.2017.6}, year = {2017}, date = {2017-04-25}, journal = {Business and Politics}, volume = {19}, number = {2}, pages = {298-326}, abstract = {Since 2008, a massive shift has occurred from active toward passive investment strategies. The passive index fund industry is dominated by BlackRock, Vanguard, and State Street, which we call the “Big Three.” We compre- hensively map the ownership of the Big Three in the United States and find that together they constitute the largest shareholder in 88 percent of the S&P 500 firms. In contrast to active funds, the Big Three hold relatively illiquid and perma- nent ownership positions. This has led to opposing views on incentives and pos- sibilities to actively exert shareholder power. Some argue passive investors have little shareholder power because they cannot “exit,” while others point out this gives them stronger incentives to actively influence corporations. Through an anal- ysis of proxy vote records we find that the Big Three do utilize coordinated voting strategies and hence follow a centralized corporate governance strategy. However, they generally vote with management, except at director (re-)elections. Moreover, the Big Three may exert “hidden power” through two channels: First, via private engagements with management of invested companies; and second, because company executives could be prone to internalizing the objectives of the Big Three. We discuss how this development entails new forms of financial risk.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Since 2008, a massive shift has occurred from active toward passive investment strategies. The passive index fund industry is dominated by BlackRock, Vanguard, and State Street, which we call the “Big Three.” We compre- hensively map the ownership of the Big Three in the United States and find that together they constitute the largest shareholder in 88 percent of the S&P 500 firms. In contrast to active funds, the Big Three hold relatively illiquid and perma- nent ownership positions. This has led to opposing views on incentives and pos- sibilities to actively exert shareholder power. Some argue passive investors have little shareholder power because they cannot “exit,” while others point out this gives them stronger incentives to actively influence corporations. Through an anal- ysis of proxy vote records we find that the Big Three do utilize coordinated voting strategies and hence follow a centralized corporate governance strategy. However, they generally vote with management, except at director (re-)elections. Moreover, the Big Three may exert “hidden power” through two channels: First, via private engagements with management of invested companies; and second, because company executives could be prone to internalizing the objectives of the Big Three. We discuss how this development entails new forms of financial risk. |
van Veen, K; Heemskerk, E M Interlocking Directorate Networks Journal Article Encyclopedia of Social Network Analysis and Mining, pp. 1-6, 2017, ISBN: 978-1-4614-7163-9. Abstract | Links | BibTeX | Tags: @article{Veen, title = {Interlocking Directorate Networks}, author = {K van Veen and E M Heemskerk}, url = {https://link.springer.com/referenceworkentry/10.1007/978-1-4614-7163-9_274-1}, doi = {10.1007/978-1-4614-7163-9_274-1}, isbn = {978-1-4614-7163-9}, year = {2017}, date = {2017-03-17}, journal = {Encyclopedia of Social Network Analysis and Mining}, pages = {1-6}, abstract = {Since the emergence of the modern corporation in the nineteenth century, managerial power has been in the hands of a relatively small group of people, often referred to as the business elite. Within this group, a substantial number of in- dividuals sit on the board of directors of mul- tiple companies. By combining multiple board positions, these individuals create “interlocking directorates” between companies. As a result, they can – potentially – coordinate management decisions, share information and practices, and enforce norms in different company contexts. This concentration of economic power in the hands of a few and its manifestation in extensive networks of interlocking directorates led to a sig- nificant set of studies on business elites beginning in the early twentieth century. Questions include the nature and delineation of the business elite and the causes and consequences of this phe- nomenon for the company and its stakeholders (e.g., Mizruchi 1996). The set of companies, directors, and their link- ages form an “affiliation” or “two-mode” network from which a “one-mode” company-by-company network and a director-by-director network can be induced. These networks can be seen as a reflection of economic power structures and raise a variety of different questions which have been approached with different perspectives and by applying different network analyses.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Since the emergence of the modern corporation in the nineteenth century, managerial power has been in the hands of a relatively small group of people, often referred to as the business elite. Within this group, a substantial number of in- dividuals sit on the board of directors of mul- tiple companies. By combining multiple board positions, these individuals create “interlocking directorates” between companies. As a result, they can – potentially – coordinate management decisions, share information and practices, and enforce norms in different company contexts. This concentration of economic power in the hands of a few and its manifestation in extensive networks of interlocking directorates led to a sig- nificant set of studies on business elites beginning in the early twentieth century. Questions include the nature and delineation of the business elite and the causes and consequences of this phe- nomenon for the company and its stakeholders (e.g., Mizruchi 1996). The set of companies, directors, and their link- ages form an “affiliation” or “two-mode” network from which a “one-mode” company-by-company network and a director-by-director network can be induced. These networks can be seen as a reflection of economic power structures and raise a variety of different questions which have been approached with different perspectives and by applying different network analyses. |
van der Brug, Wouter; Heemskerk, Eelke Politics and Power Incollection Political Science and Changing Politics, pp. 11–30, Amsterdam University Press, 2017. BibTeX | Tags: @incollection{van2017politics, title = {Politics and Power}, author = {Wouter van der Brug and Eelke Heemskerk}, year = {2017}, date = {2017-01-01}, booktitle = {Political Science and Changing Politics}, pages = {11--30}, publisher = {Amsterdam University Press}, keywords = {}, pubstate = {published}, tppubtype = {incollection} } |
Babic, Milan; Fichtner, Jan; Heemskerk, Eelke M States versus corporations: Rethinking the power of business in international politics Journal Article The International Spectator, 52 (4), pp. 20–43, 2017. BibTeX | Tags: @article{babic2017states, title = {States versus corporations: Rethinking the power of business in international politics}, author = {Milan Babic and Jan Fichtner and Eelke M Heemskerk}, year = {2017}, date = {2017-01-01}, journal = {The International Spectator}, volume = {52}, number = {4}, pages = {20--43}, publisher = {Routledge}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, EM Ligt het Rijnland nu in de VS?: Lange termijn ori"entatie en passieve investeringsfondsen Journal Article Goed Bestuur & Toezicht, 13 (2), pp. 14–19, 2017. BibTeX | Tags: @article{heemskerk2017ligt, title = {Ligt het Rijnland nu in de VS?: Lange termijn ori"entatie en passieve investeringsfondsen}, author = {EM Heemskerk}, year = {2017}, date = {2017-01-01}, journal = {Goed Bestuur & Toezicht}, volume = {13}, number = {2}, pages = {14--19}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, Elke Langetermijnori"entatie en de opkomst van passieve investeerders Journal Article Economisch Statistische Berichten, 102 (4751), pp. 320–321, 2017. BibTeX | Tags: @article{heemskerk2017langetermijnorientatie, title = {Langetermijnori"entatie en de opkomst van passieve investeerders}, author = {Elke Heemskerk}, year = {2017}, date = {2017-01-01}, journal = {Economisch Statistische Berichten}, volume = {102}, number = {4751}, pages = {320--321}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
van der Brug, W; Heemskerk, E Politiek en macht Journal Article Politicologie en de veranderende politiek, pp. 11–32, 2017. BibTeX | Tags: @article{van2017politiek, title = {Politiek en macht}, author = {W van der Brug and E Heemskerk}, year = {2017}, date = {2017-01-01}, journal = {Politicologie en de veranderende politiek}, pages = {11--32}, publisher = {Amsterdam University Press}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
2016 |
Takes, F W Network science shows London is at the heart of the world’s corporate elite Online LSE Business Review 2016. Abstract | Links | BibTeX | Tags: @online{LSEFrank, title = {Network science shows London is at the heart of the world’s corporate elite}, author = {F W Takes}, url = {http://blogs.lse.ac.uk/businessreview/2016/07/15/network-science-shows-london-is-at-the-heart-of-the-worlds-corporate-elite/}, year = {2016}, date = {2016-07-15}, organization = {LSE Business Review}, abstract = {In this blog article, we investigate the position of the UK within the global corporate elite network. Firms are not individual market actors, but are typically embedded in dense networks of power and control, for example based on ownership or interlocking directorates. The CORPNET research group at the University of Amsterdam studies these networks as part of a five-year research programme funded by the European Research Council (ERC). The general idea behind the group’s so-called “network science“ approach is that by studying a system of interaction (the global economy) rather than mere sums and averages of the systems’s individuals (economic activity and behaviour of corporations/countries), we obtain new insights in the considered system.}, keywords = {}, pubstate = {published}, tppubtype = {online} } In this blog article, we investigate the position of the UK within the global corporate elite network. Firms are not individual market actors, but are typically embedded in dense networks of power and control, for example based on ownership or interlocking directorates. The CORPNET research group at the University of Amsterdam studies these networks as part of a five-year research programme funded by the European Research Council (ERC). The general idea behind the group’s so-called “network science“ approach is that by studying a system of interaction (the global economy) rather than mere sums and averages of the systems’s individuals (economic activity and behaviour of corporations/countries), we obtain new insights in the considered system. |
Mokken, R J; Heemskerk, E M; Laan, S Close communication and 2-clubs in corporate networks: Europe 2010 Journal Article Social Network Analysis and Mining, 6 (1: Article 40), 2016. Abstract | Links | BibTeX | Tags: @article{Europe2010, title = {Close communication and 2-clubs in corporate networks: Europe 2010}, author = {R J Mokken and E M Heemskerk and S Laan}, url = {https://link.springer.com/article/10.1007/s13278-016-0345-x}, doi = {10.1007/s13278-016-0345-x}, year = {2016}, date = {2016-06-22}, journal = {Social Network Analysis and Mining}, volume = {6}, number = {1: Article 40}, abstract = {Corporate networks, as induced by interlocking directorates between corporations, provide structures of personal communication between their boards. This paper studies such networks using the framework of a previous paper by Laan et al. (Soc Netw Anal Min, 2016. doi:10.1007/s13278-016-0326-0) where close communication is defined by sub-networks, so that each pair of nodes (boards of a corporation) are either neighbours or have at least one common neighbour. These correspond to sub-graphs of diameter at most 2, designated by us earlier as 2-clubs of three types (coteries, social circles and hamlets), and conform three levels of close communication in social networks. They are all contained within the disjoint boroughs of a network, supercommunities which envelope all close communication between nodes of a network. This framework is applied here to an analysis of corporate board interlocks between the top 300 European corporations 2010, using the data from an earlier study by one of us (Heemskerk in Econ Soc 42:74–101, 2013). While the results corroborate the main findings of the earlier studies, our approach also uncovers additional, thus far unrevealed patterns. A single dominant European borough with the Francophone network as its centre and that of Germany only regionally and internally connected. The UK business elite on the other hand is very present and prominent in this European structure of corporate close communication.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Corporate networks, as induced by interlocking directorates between corporations, provide structures of personal communication between their boards. This paper studies such networks using the framework of a previous paper by Laan et al. (Soc Netw Anal Min, 2016. doi:10.1007/s13278-016-0326-0) where close communication is defined by sub-networks, so that each pair of nodes (boards of a corporation) are either neighbours or have at least one common neighbour. These correspond to sub-graphs of diameter at most 2, designated by us earlier as 2-clubs of three types (coteries, social circles and hamlets), and conform three levels of close communication in social networks. They are all contained within the disjoint boroughs of a network, supercommunities which envelope all close communication between nodes of a network. This framework is applied here to an analysis of corporate board interlocks between the top 300 European corporations 2010, using the data from an earlier study by one of us (Heemskerk in Econ Soc 42:74–101, 2013). While the results corroborate the main findings of the earlier studies, our approach also uncovers additional, thus far unrevealed patterns. A single dominant European borough with the Francophone network as its centre and that of Germany only regionally and internally connected. The UK business elite on the other hand is very present and prominent in this European structure of corporate close communication. |
Takes, F W; Heemskerk, E M Brexit en de verdeeldheid van het Britse Old Boys netwerk Online Stuk Rood Vlees 2016. Abstract | Links | BibTeX | Tags: @online{SRV, title = {Brexit en de verdeeldheid van het Britse Old Boys netwerk}, author = {F W Takes and E M Heemskerk}, url = {http://stukroodvlees.nl/brexit-verdeeldheid-britse-old-boys-netwerk/}, year = {2016}, date = {2016-06-22}, organization = {Stuk Rood Vlees}, abstract = {Morgen stemt de Britse kiezer: blijven ze in de Europese Unie, of gaan ze toch liever zelfstandig verder? Hoewel het onwaarschijnlijk is dat sommige van de doemscenario’s die worden geschetst werkelijkheid zullen worden, is het zeker dat Brexit verregaande gevolgen zal hebben voor de wereldwijde geopolitieke en economische verhoudingen.}, keywords = {}, pubstate = {published}, tppubtype = {online} } Morgen stemt de Britse kiezer: blijven ze in de Europese Unie, of gaan ze toch liever zelfstandig verder? Hoewel het onwaarschijnlijk is dat sommige van de doemscenario’s die worden geschetst werkelijkheid zullen worden, is het zeker dat Brexit verregaande gevolgen zal hebben voor de wereldwijde geopolitieke en economische verhoudingen. |
Takes, F W; Heemskerk, E M Centrality in the Global Network of Corporate Control Journal Article Social Network Analysis and Mining, 6 (1: Article 97), 2016. Abstract | Links | BibTeX | Tags: @article{Centrality, title = {Centrality in the Global Network of Corporate Control}, author = {F W Takes and E M Heemskerk}, url = {http://arxiv.org/abs/1605.08197}, doi = {10.1007/s13278-016-0402-5}, year = {2016}, date = {2016-05-22}, journal = {Social Network Analysis and Mining}, volume = {6}, number = {1: Article 97}, abstract = {Corporations across the world are highly interconnected in a large global network of corporate control. This paper investigates the global board interlock network, covering 400,000 firms linked through 1,700,000 edges representing shared directors between these firms. The main focus is on the concept of centrality, which is used to investigate the embeddedness of firms from a particular country within the global network. The study results in three contributions. First, to the best of our knowledge for the first time we can investigate the topology as well as the concept of centrality in corporate networks at a global scale, allowing for the largest cross-country comparison ever done in interlocking directorates literature. We demonstrate, amongst other things, extremely similar network topologies, yet large differences between countries when it comes to the relation between economic prominence indicators and firm centrality. Second, we introduce two new metrics that are specifically suitable for comparing the centrality ranking of a partition to that of the full network. Using the notion of centrality persistence we propose to measure the persistence of a partition's centrality ranking in the full network. In the board interlock network, it allows us to assess the extent to which the footprint of a national network is still present within the global network. Next, the measure of centrality ranking dominance tells us whether a partition (country) is more dominant at the top or the bottom of the centrality ranking of the full (global) network. Finally, comparing these two new measures of persistence and dominance between different countries allows us to classify these countries based the their embeddedness, measured using the relation between the centrality of a country's firms on the national and the global scale of the board interlock network.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Corporations across the world are highly interconnected in a large global network of corporate control. This paper investigates the global board interlock network, covering 400,000 firms linked through 1,700,000 edges representing shared directors between these firms. The main focus is on the concept of centrality, which is used to investigate the embeddedness of firms from a particular country within the global network. The study results in three contributions. First, to the best of our knowledge for the first time we can investigate the topology as well as the concept of centrality in corporate networks at a global scale, allowing for the largest cross-country comparison ever done in interlocking directorates literature. We demonstrate, amongst other things, extremely similar network topologies, yet large differences between countries when it comes to the relation between economic prominence indicators and firm centrality. Second, we introduce two new metrics that are specifically suitable for comparing the centrality ranking of a partition to that of the full network. Using the notion of centrality persistence we propose to measure the persistence of a partition's centrality ranking in the full network. In the board interlock network, it allows us to assess the extent to which the footprint of a national network is still present within the global network. Next, the measure of centrality ranking dominance tells us whether a partition (country) is more dominant at the top or the bottom of the centrality ranking of the full (global) network. Finally, comparing these two new measures of persistence and dominance between different countries allows us to classify these countries based the their embeddedness, measured using the relation between the centrality of a country's firms on the national and the global scale of the board interlock network. |
Heemskerk, E M How Corporate Boards Connect, in Charts Online Harvard Business Review 2016. Abstract | Links | BibTeX | Tags: @online{HBRCharts, title = {How Corporate Boards Connect, in Charts}, author = {E M Heemskerk}, url = {https://hbr.org/2016/04/how-corporate-boards-connect-in-charts)}, year = {2016}, date = {2016-04-21}, journal = {Harvards Business Review}, organization = {Harvard Business Review}, abstract = {Everyone knows that large companies share board members, but it’s hard to appreciate just how enmeshed global governance has been for decades until you see the connections. I partnered with Meindert Fennema of the University of Amsterdam and William K. Carroll from the University of Victoria to show how companies’ boards interlock and to study the implications for when a crisis hits. We plotted shared directorships among 176 large companies in 1976 and 2013, two years that followed a major global economic crisis}, keywords = {}, pubstate = {published}, tppubtype = {online} } Everyone knows that large companies share board members, but it’s hard to appreciate just how enmeshed global governance has been for decades until you see the connections. I partnered with Meindert Fennema of the University of Amsterdam and William K. Carroll from the University of Victoria to show how companies’ boards interlock and to study the implications for when a crisis hits. We plotted shared directorships among 176 large companies in 1976 and 2013, two years that followed a major global economic crisis |
Heemskerk, Eelke M; Takes, Frank W The corporate elite community structure of global capitalism Journal Article New Political Economy, 21 (1), pp. 90–118, 2016. BibTeX | Tags: @article{heemskerk2016corporate, title = {The corporate elite community structure of global capitalism}, author = {Eelke M Heemskerk and Frank W Takes}, year = {2016}, date = {2016-01-01}, journal = {New Political Economy}, volume = {21}, number = {1}, pages = {90--118}, publisher = {Routledge}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, Eelke M; Fennema, Meindert; Carroll, William K The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates Journal Article Global Networks, 16 (1), pp. 68–88, 2016. BibTeX | Tags: @article{heemskerk2016global, title = {The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates}, author = {Eelke M Heemskerk and Meindert Fennema and William K Carroll}, year = {2016}, date = {2016-01-01}, journal = {Global Networks}, volume = {16}, number = {1}, pages = {68--88}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, Eelke M; Heemskerk, Klaas; Wats, Margrietha Conflict in the Boardroom: A Participant Observation Study of Supervisory Board Dynamics Journal Article Journal of Management & Governance, (doi:10.1007/s10997-015-9339-8), 2016. BibTeX | Tags: @article{heemskerk2016conflict, title = {Conflict in the Boardroom: A Participant Observation Study of Supervisory Board Dynamics}, author = {Eelke M Heemskerk and Klaas Heemskerk and Margrietha Wats}, year = {2016}, date = {2016-01-01}, journal = {Journal of Management & Governance}, number = {doi:10.1007/s10997-015-9339-8}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, E; Wats, M Constructief conflict in de RvC: Boardroom dynamics en goed bestuur Journal Article Goed Bestuur & Toezicht, 12 (3), pp. 23–27, 2016. BibTeX | Tags: @article{heemskerk2016constructief, title = {Constructief conflict in de RvC: Boardroom dynamics en goed bestuur}, author = {E Heemskerk and M Wats}, year = {2016}, date = {2016-01-01}, journal = {Goed Bestuur & Toezicht}, volume = {12}, number = {3}, pages = {23--27}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, E M; Fennema, M; Carroll, W K The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates Journal Article Global Networks, 16 (1), pp. 68-88, 2016, (Featured in Harvard Business Review: https://hbr.org/2016/04/how-corporate-boards-connect-in-charts). Abstract | Links | BibTeX | Tags: @article{Carroll, title = {The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates}, author = {E M Heemskerk and M Fennema and W K Carroll}, url = {http://onlinelibrary.wiley.com/doi/10.1111/glob.12098/abstract}, doi = {10.1111/glob.12098}, year = {2016}, date = {2016-01-00}, journal = {Global Networks}, volume = {16}, number = {1}, pages = {68-88}, abstract = {What impact did the recent financial crisis have on the corporate elite's international network? Has corporate governance taken on an essentially national structure or have transnational networks remained robust? We investigate this issue by comparing the networks of interlocking directorates among the 176 largest corporations in the world economy in 1976, 1996, 2006 and 2013. We find that corporate elites have not retrenched into their national business communities: the transnational network increased in relative importance and remained largely intact during the crisis lasting from 2006 to 2013. However, this network does not depend – as it used to do – on a small number of big linkers but on a growing number of single linkers. The network has become less hierarchical. As a group, the corporate elite has become more transnational in character. We see this as indicative of a recomposition of the corporate elite from a national to a transnational orientation.}, note = {Featured in Harvard Business Review: https://hbr.org/2016/04/how-corporate-boards-connect-in-charts}, keywords = {}, pubstate = {published}, tppubtype = {article} } What impact did the recent financial crisis have on the corporate elite's international network? Has corporate governance taken on an essentially national structure or have transnational networks remained robust? We investigate this issue by comparing the networks of interlocking directorates among the 176 largest corporations in the world economy in 1976, 1996, 2006 and 2013. We find that corporate elites have not retrenched into their national business communities: the transnational network increased in relative importance and remained largely intact during the crisis lasting from 2006 to 2013. However, this network does not depend – as it used to do – on a small number of big linkers but on a growing number of single linkers. The network has become less hierarchical. As a group, the corporate elite has become more transnational in character. We see this as indicative of a recomposition of the corporate elite from a national to a transnational orientation. |
Heemskerk, E M; Takes, F W; Garcia-Bernardo, J; Huijzer, M J Where is the global corporate elite? A large-scale network study of local and nonlocal interlocking directorates Journal Article Sociologica, 2016 (2), pp. 1-31, 2016, (Part of Symposium: Why Élites Matter? A Sociological Assessment.). Abstract | Links | BibTeX | Tags: @article{LargeScale, title = {Where is the global corporate elite? A large-scale network study of local and nonlocal interlocking directorates}, author = {E M Heemskerk and F W Takes and J Garcia-Bernardo and M J Huijzer}, url = {http://hdl.handle.net/11245.1/7c2efec1-5024-4bf9-9ec2-cc0c4664397e}, doi = {10.2383/85292}, year = {2016}, date = {2016-00-00}, journal = {Sociologica}, volume = {2016}, number = {2}, pages = {1-31}, abstract = {Abstract: Business élites reconfigure their locus of organization over time, from the city level, to the national level, and beyond. We ask what the current level of élite organization is and propose a novel theoretical and empirical approach to answer this question. Building on the universal distinction between local and nonlocal ties we use network analysis and community detection to dissect the global network of interlocking directorates among over five million firms. We find that élite orientation is indeed changing from the national to the transnational plane, but we register a considerable heterogeneity across different regions in the world. In some regions the business communities are organized along national borders, whereas in other areas the locus of organization is at the city level or international level. London dominates the global corporate élite network. Our findings underscore that the study of corporate élites requires an approach that is sensitive to levels of organization that go beyond the confines of nation states.}, note = {Part of Symposium: Why Élites Matter? A Sociological Assessment.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Abstract: Business élites reconfigure their locus of organization over time, from the city level, to the national level, and beyond. We ask what the current level of élite organization is and propose a novel theoretical and empirical approach to answer this question. Building on the universal distinction between local and nonlocal ties we use network analysis and community detection to dissect the global network of interlocking directorates among over five million firms. We find that élite orientation is indeed changing from the national to the transnational plane, but we register a considerable heterogeneity across different regions in the world. In some regions the business communities are organized along national borders, whereas in other areas the locus of organization is at the city level or international level. London dominates the global corporate élite network. Our findings underscore that the study of corporate élites requires an approach that is sensitive to levels of organization that go beyond the confines of nation states. |
Heemskerk, E M; Takes, F W The Corporate Elite Community Structure of Global Capitalism Journal Article New Political Economy, 21 (1), pp. 90-118, 2016. Abstract | Links | BibTeX | Tags: @article{GlobalCapitalism, title = {The Corporate Elite Community Structure of Global Capitalism}, author = {E M Heemskerk and F W Takes}, url = {http://dx.doi.org/10.1080/13563467.2015.1041483}, doi = {10.1080/13563467.2015.1041483}, year = {2016}, date = {2016-00-00}, journal = {New Political Economy}, volume = {21}, number = {1}, pages = {90-118}, abstract = {A key debate on the merits and consequences of globalisation asks to what extent we have moved to a multipolar global political economy. Here we investigate this issue through the properties and topologies of corporate elite networks and ask: what is the community structure of the global corporate elite? In order to answer this question, we analyse how the largest one million firms in the world are interconnected at the level of corporate governance through interlocking directorates. Community detection through modularity maximisation reveals that regional clusters play a fundamental role in the network architecture of the global political economy. Transatlantic connections remain particularly strong: Europe and North America remain interconnected in a dense network of shared directors. A distinct Asian cluster stands apart as separate and oriented more towards itself. While it develops and gains economic and political power, Asia remains by and large outside the scope of the networks of the incumbent global (that is, North Atlantic) corporate elite. We see this as a sign of the rise of competing corporate elites. But the corporate elites from the traditional core countries still form a powerful opponent for any competing faction in the global corporate elite.}, keywords = {}, pubstate = {published}, tppubtype = {article} } A key debate on the merits and consequences of globalisation asks to what extent we have moved to a multipolar global political economy. Here we investigate this issue through the properties and topologies of corporate elite networks and ask: what is the community structure of the global corporate elite? In order to answer this question, we analyse how the largest one million firms in the world are interconnected at the level of corporate governance through interlocking directorates. Community detection through modularity maximisation reveals that regional clusters play a fundamental role in the network architecture of the global political economy. Transatlantic connections remain particularly strong: Europe and North America remain interconnected in a dense network of shared directors. A distinct Asian cluster stands apart as separate and oriented more towards itself. While it develops and gains economic and political power, Asia remains by and large outside the scope of the networks of the incumbent global (that is, North Atlantic) corporate elite. We see this as a sign of the rise of competing corporate elites. But the corporate elites from the traditional core countries still form a powerful opponent for any competing faction in the global corporate elite. |
2015 |
Heemskerk, Klaas; Heemskerk, Eelke M; Wats, Margrietha Behavioral Determinants of Nonprofit Board Performance. The Case of Supervisory Boards in Dutch Secondary Education Journal Article Nonprofit Management & leadership, 25 (4), pp. 417–430, 2015. BibTeX | Tags: @article{heemskerk2015behavioral, title = {Behavioral Determinants of Nonprofit Board Performance. The Case of Supervisory Boards in Dutch Secondary Education}, author = {Klaas Heemskerk and Eelke M Heemskerk and Margrietha Wats}, year = {2015}, date = {2015-01-01}, journal = {Nonprofit Management & leadership}, volume = {25}, number = {4}, pages = {417--430}, publisher = {Jossey-Bass}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Heemskerk, Eelke Thomas David and Gerarda Westerhuis (eds.), The Power of Corporate Networks. A Comparative and Historical Perspective Miscellaneous 2015. BibTeX | Tags: @misc{heemskerk2015thomas, title = {Thomas David and Gerarda Westerhuis (eds.), The Power of Corporate Networks. A Comparative and Historical Perspective}, author = {Eelke Heemskerk}, year = {2015}, date = {2015-01-01}, keywords = {}, pubstate = {published}, tppubtype = {misc} } |
de Koning, J; van Muijen, J; Heemskerk, E Bestuursacademie als Governance Accelerator: Rode Kruis Voorloper Met Eigen Leerinstituut Journal Article Goed Bestuur & Toezicht, (2), pp. 44–47, 2015. BibTeX | Tags: @article{de2015bestuursacademie, title = {Bestuursacademie als Governance Accelerator: Rode Kruis Voorloper Met Eigen Leerinstituut}, author = {J de Koning and J van Muijen and E Heemskerk}, year = {2015}, date = {2015-01-01}, journal = {Goed Bestuur & Toezicht}, number = {2}, pages = {44--47}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
2014 |
Heemskerk, Eelke Michiel; Fennema, Meindert Women on board: Female board membership as a form of elite democratization Journal Article Enterprise & Society, 15 (2), pp. 252–284, 2014. BibTeX | Tags: @article{heemskerk2014women, title = {Women on board: Female board membership as a form of elite democratization}, author = {Eelke Michiel Heemskerk and Meindert Fennema}, year = {2014}, date = {2014-01-01}, journal = {Enterprise & Society}, volume = {15}, number = {2}, pages = {252--284}, publisher = {Cambridge University Press}, keywords = {}, pubstate = {published}, tppubtype = {article} } |
Publications
2020 |
The duality of firms and directors in board interlock networks: A relational event modeling approach Journal Article Social Networks, 62 , pp. 68-79, 2020. |
The Conversation 2020. |
Index funds might sound boring. But who decides which countries and companies to include? Online The Washington Post 2020. |
Does it pay to be a multinational? A large-sample, cross-national replication assessing the multinationality--performance relationship Journal Article Strategic Management Journal, 41 (1), pp. 152–172, 2020. |
Community membership consistency in corporate board interlock networks Journal Article arXiv, (2008.00745), 2020. |
The New Permanent Universal Owners: Index funds, patient capital, and the distinction between feeble and forceful stewardship Journal Article Economy and Society, 49 (4), pp. 493–515, 2020. |
2019 |
Steering capital: the growing private authority of index providers in the age of passive asset management Journal Article Review of International Political Economy, 2019. |
The Wealth Defence Industry: A large-scale study on accountancy firms as profit shifting facilitators Journal Article Working paper, 2019. |
The rise of transnational state capital: state-led foreign investment in the 21st century Journal Article Review of International Political Economy, 27 (3), pp. 433-475, 2019. |
2018 |
Multiplex network motifs as building blocks of corporate networks Journal Article Applied Network Science, Springer, 3 (39), pp. 1-22, 2018. |
The New Permanent Universal Owners: Index Funds, (Im)patient Capital, and the Claim of Long-termism Journal Article SSRN, pp. 1-30, 2018. |
Understanding evolving communities in transnational board interlock networks Inproceedings Proceedings of the 14th IEEE International Conference on e-Science, pp. 312-313, IEEE, 2018. |
If this is capitalism, where are the price signals?: The glacial effects of passive investment Online SPERI, (Ed.): 2018. |
Who is more powerful – states or corporations? Online The Conversation 2018. |
Meet the New Owners of Corporate America Online Cambridge Core Blog 2018. |
The Promise and Perils of Using Big Data in the Study of Corporate Networks: Problems, Diagnostics and Fixes Journal Article Global Networks, 18 (1), pp. 3-32, 2018. |
When Theory Meets Methods: The Naissance of Computer Assisted Corporate Interlock Research Journal Article Global Networks, 18 (1), pp. 81-104, 2018. |
Multiplex network motifs as building blocks of corporate networks Journal Article Applied network science, 3 (1), pp. 1–22, 2018. |
Network analysis and the Amsterdam School Journal Article Transnational Capital and Class Fractions: The Amsterdam School Perspective Reconsidered, pp. 197, 2018. |
2017 |
Sinks and Conduits: Identifying Offshore Financial Centers by using Big Data Journal Article IFC Review, Economic Report (Winter 2017/ 18), pp. 61-63, 2017. |
States versus Corporations: Rethinking the Power of Business in International Politics Journal Article The International Spectator: Italian Journal of International Affairs, 2017. |
Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network Journal Article Scientific Reports, 7 (Article 6246), 2017. |
These five countries are conduits for the world's biggest tax havens Online The Conversation 2017. |
Langetermijnoriëntatie en de opkomst van passieve investeerders Journal Article Economisch Statistische Berichten (ESB), 102 (4751), pp. 320-321, 2017. |
Ligt het Rijnland nu in de VS? Lange termijn oriëntatie en passieve investeringsfondsen Journal Article Goed Bestuur & Toezicht, 13 (2), pp. 14-16, 2017. |
The New Mandate Owners: Passive Asset Managers and the Decoupling of Corporate Ownership Journal Article Competition Policy International Antitrust Chronicle, Spring 2017 Volume 1 (3), pp. 51-57, 2017. |
These three firms own corporate America Online The Conversation 2017. |
Hidden Power of the Big Three? Passive Index Funds, Re-Concentration of Corporate Ownership, and New Financial Risk Journal Article Business and Politics, 19 (2), pp. 298-326, 2017. |
Interlocking Directorate Networks Journal Article Encyclopedia of Social Network Analysis and Mining, pp. 1-6, 2017, ISBN: 978-1-4614-7163-9. |
Politics and Power Incollection Political Science and Changing Politics, pp. 11–30, Amsterdam University Press, 2017. |
States versus corporations: Rethinking the power of business in international politics Journal Article The International Spectator, 52 (4), pp. 20–43, 2017. |
Ligt het Rijnland nu in de VS?: Lange termijn ori"entatie en passieve investeringsfondsen Journal Article Goed Bestuur & Toezicht, 13 (2), pp. 14–19, 2017. |
Langetermijnori"entatie en de opkomst van passieve investeerders Journal Article Economisch Statistische Berichten, 102 (4751), pp. 320–321, 2017. |
Politiek en macht Journal Article Politicologie en de veranderende politiek, pp. 11–32, 2017. |
2016 |
Network science shows London is at the heart of the world’s corporate elite Online LSE Business Review 2016. |
Close communication and 2-clubs in corporate networks: Europe 2010 Journal Article Social Network Analysis and Mining, 6 (1: Article 40), 2016. |
Brexit en de verdeeldheid van het Britse Old Boys netwerk Online Stuk Rood Vlees 2016. |
Centrality in the Global Network of Corporate Control Journal Article Social Network Analysis and Mining, 6 (1: Article 97), 2016. |
How Corporate Boards Connect, in Charts Online Harvard Business Review 2016. |
The corporate elite community structure of global capitalism Journal Article New Political Economy, 21 (1), pp. 90–118, 2016. |
The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates Journal Article Global Networks, 16 (1), pp. 68–88, 2016. |
Conflict in the Boardroom: A Participant Observation Study of Supervisory Board Dynamics Journal Article Journal of Management & Governance, (doi:10.1007/s10997-015-9339-8), 2016. |
Constructief conflict in de RvC: Boardroom dynamics en goed bestuur Journal Article Goed Bestuur & Toezicht, 12 (3), pp. 23–27, 2016. |
The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates Journal Article Global Networks, 16 (1), pp. 68-88, 2016, (Featured in Harvard Business Review: https://hbr.org/2016/04/how-corporate-boards-connect-in-charts). |
Where is the global corporate elite? A large-scale network study of local and nonlocal interlocking directorates Journal Article Sociologica, 2016 (2), pp. 1-31, 2016, (Part of Symposium: Why Élites Matter? A Sociological Assessment.). |
The Corporate Elite Community Structure of Global Capitalism Journal Article New Political Economy, 21 (1), pp. 90-118, 2016. |
2015 |
Behavioral Determinants of Nonprofit Board Performance. The Case of Supervisory Boards in Dutch Secondary Education Journal Article Nonprofit Management & leadership, 25 (4), pp. 417–430, 2015. |
Thomas David and Gerarda Westerhuis (eds.), The Power of Corporate Networks. A Comparative and Historical Perspective Miscellaneous 2015. |
Bestuursacademie als Governance Accelerator: Rode Kruis Voorloper Met Eigen Leerinstituut Journal Article Goed Bestuur & Toezicht, (2), pp. 44–47, 2015. |
2014 |
Women on board: Female board membership as a form of elite democratization Journal Article Enterprise & Society, 15 (2), pp. 252–284, 2014. |