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Interlocking Directorates as a Trust Substitute: The Italian Non-Life Insurance Industry

Authors: Davide Carbonai; Giovanni Di Bartolomeo;

Interlocking Directorates as a Trust Substitute: The Italian Non-Life Insurance Industry

Abstract

This paper investigates the Italian insurance system by analyzing the (interlock) linkages among companies created through their directors. This approach defines interlocking directorates as the tie created between two companies when a person is a member of both boards of directors; each case of administrators’ co-presence is thus a connection between companies. The investigation follows a two-step procedure: first, it analyzes the social network of the insurance industry by focusing on the linkages among directors and among companies. Second, network statistics are combined in synthetic indices through principal component analyses in order to verify a correlation between indices and companies’ market shares. For the sake of brevity, this analysis is mainly restricted to non-life insurances, which are indeed the least competitive (as claimed 11 companies control the 78% of market) and most closed compared to the competition of other financial agents (life insurances compete with other forms of financial investments).

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
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