Abstract

Cross-shareholding is a new type of strategic means for capital operation and is an important component of corporate governance. With the increasing complexity of business motivation, the structure of a cross-shareholding network is becoming more intricate, and it exposes various important local patterns with different economic functions. The goal of this paper is to uncover investment mechanisms and economic functions implied in cross-shareholding networks by analyzing the local characteristic patterns of company interactions. In this paper, we construct the CSNs of listed companies and extract the directed triadic motifs to reveal the evolutionary characteristics of local investment patterns at the company and industry levels. On the company level, we find that companies tend to form V-shaped structures with other companies, but bidirectional shareholding patterns and circular relationships in the triads are scarce. On the industry level, we identify the characteristic linking patterns of some industries with a role analysis of the industries. Furthermore, we detect the evolutionary characteristics of industry interrelationships in three implied patterns. Such a motif evolution analysis may provide valuable information for investors and supervisory departments that make decisions about investment portfolios and policy. Meanwhile, this study is also helpful for exploring the implied information in other empirical networks.