Graph analysis of cross-shareholdings among organisations

• Main Author: Sim, Shan Qin
• Other Authors: Anwitaman Datta
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2020
• Subjects: Engineering::Computer science and engineering
• Online Access: https://hdl.handle.net/10356/137934
• Institution: Nanyang Technological University

The study is to investigate the reasons and the impact of cross-shareholdings in the Singapore Stock Exchange (SGX). After investigation, a small number of cross-shareholdings was found between listed companies, these resulted in a very sparse graph. It was evaluated that the reasons for these cross-shareholdings are portfolio diversification, consolidation of the company’s position in their sectors or/and to prevent hostile takeovers. Graph decomposition was done on the sparse graph to obtain each cluster of companies and it was found that most cross-shareholdings was either done by a family conglomerate or state-owned entities using a certain graph structure. This is to ensure absolute voting rights and/or to enjoy the dividends payout. PageRank and Out-degree centrality were used to identify important clusters and companies.