The Characteristics And Its Evolution Of Chinese Corporate Interlocking Directorate Network

Interlocking directorate network is formed in the social,cultural and political framework,which is of great significance for promoting exchanges and cooperation between corporates and formulating reasonable and effective management system.With the rapid development of economy,information exchanges between corporates become more frequent and competitions become more intense,corporates begin to establish social networks to enhance their ability to control resources and competitiveness,and interlocking directorate network also develops continuously.At present,Chinese academia pays more attention to the influence of interlocking directorate network on corporate governance behavior and economic benefit than the research on its observation and evolution of characteristics.In this paper,the data samples available to all listed corporates in China from 2002 to2021 are selected as data sources.After manually cleaning the data,I adopted social networks analysis and Pajek to analyze the characteristics and its evolution of the network from the perspectives of the whole,space and industry.Finally,I established an exponential random graph models and selected appropriate variables to analyze formation and evolution mechanism of interlocking directorate network.Firstly,I searched for the optimal model to explain formation and evolution mechanism of interlocking directorate network in 2021,and then the optimal model was used to observe the evolution of the network in 2005,2009,2013,2017 and 2021.The results show that:(1)The scale of interlocking directorate network expands continuously,with a trend of interlocking strengthening and decentralization.The phenomenon of interlocking directors is more obvious;the cohesiveness of the whole network is weakened,but the cohesiveness of the region is strengthened,and the nodes show the trend of decentralization,network connectivity is further enhanced.(2)The developments of space and industry of interlocking directorate network are not balanced,but the differences are weakened.The degree centrality of provincial administrative is different obviously,the more developed the region is,the closer it is with other administrative regions;the differences between the development of different administrative regions become less.The developments of various industries are seriously unbalanced,interlocking corporates in technology-oriented industry account for a relatively high proportion,and the communication within the industry is close,the network structure is tight;inter-industry cooperations have become closer,and the cohesiveness of crossindustry network has changed greatly.(3)The formation of interlocking directorate network is influenced by both endogenous and exogenous factors,and there are matching effects and main effects.With the development of interlocking directors,the spatial and industrial matching effects in the network have gradually come into play in recent years.Corporates in the same administrative region have a tendency to form more internal cooperations,it is also easier for corporates in the same industry to connect with each other.The size of corporates and the number of directors are conducive to the formation of interlocking directorate network.According to the results of this paper,the following suggestions are put forward:(1)We need to establish practical government incentive mechanisms and compensation mechanisms,promote corporates with small scale and weak management ability to actively participate in the construction of interlocking directorate network,promote cooperation and communication among corporates,share information,and reduce monopoly.(2)We need to break the dependence of the industry on one or more corporates,promote the establishment of cross-industry connections between corporates,including the upstream and downstream corporates of the industrial chain,so as to achieve the purpose of industrial integration and ensure the stable development of corporates and interlocking directors.(3)We need to strengthen government supervision,impose necessary restrictions on interlocking directors,prevent interlocking directorate network from expanding without limit,and enact relevant corporate governance norms to prevent the elite from solidifying the class.