Some time ago I posted an article about methods used by banks to influence and govern the world. Some of you may have put that between conspiracy theories. For proving my point I got my hands on very interesting report. “The Network of Global Corporate Control”. Prepared by Swiss organisation lead by James Glattfelder and Stefano Battistona. Since 2007 till 2011 they investigated capital connections from 43 thousand global corporations. Below I present their results.
From over 30 million companies found in the Orbis database they chose 43,060 supranational corporations from 116 countries. From these 40 thousand over 5 thousand operate in global stock exchanges.
Over 600,000 analysed nodes link production, trade, managerial and ownership networks. For instance, the Coca-Cola Company is a parent of a Coca-Cola Hellenic Bottling which in turn owns shares in a Coca-Cola Beverages Austria. This example is a simplification. In most of the cases it looks like this:
Research shown that studied corporations are arranged in a gigantic structure of a bow-tie. With small, tightly-knit financial institutions at the core with control functions making it a super-entity. Exactly 147 corporations directly in charge of 40% of all researched companies. Another important fact is that 75% of the core is exclusively financial sector players. Widening our core scope (to include other sectors) we arrive at 737 companies control over 80% of all examined firms.
Team of analysts also presented findings of this corporate ownership pattern where in fact a tiny group of core-units exercise pressure and thus indirect control of the rest of the corporate world. In this 'influence food chain’ we all are at its bottom. Below corporations.
Although an ownership of public companies is dispersed, James Glattfelder – author of the report and expert in complex systems – it is enough to take a step back to see for yourself how everything goes back into the same pair of hands.
Authors end their research with a rhetoric question about implications of an existence of such a concentrated power. Even more importantly – what are the consequences for international competition?
Previous data of country-wide markets confirmed effects of the ownership concentration as lowering a quality of products and services and increasing prices. I leave up to you to translate this ‘local’ sample into a global scale.
Lastly, I add a list of 50 biggest corporate bodies from the very heart of a global owenrship structure. Reminder: this data is from 2007 and you will not see here Lehman Brothres bankrupted and taken over during the 2008 meltdown.
2. CAPITAL GROUP COMPANIES
3. FMR CORP
5. STATE STREET CORPORATION
6. JPMORGAN CHASE
7. LEGAL & GENERAL GROUP
8. VANGUARD GROUP
10. MERRILL LYNCH
11. WELLINGTON MANAGEMENT
12. DEUTSCHE BANK
13. FRANKLIN RESOURCES
14. CREDIT SUISSE GROUP
15. WALTON ENTERPRISES
16. BANK OF NEW YORK MELLON
18. GOLDMAN SACHS GROUP
19. T. ROWE PRICE GROUP
20. LEGG MASON
21. MORGAN STANLEY
22. MITSUBISHI UFJ FINANCIAL GROUP
23. NORTHERN TRUST CORPORATION
24. SOCIETE GENERALE
25. BANK OF AMERICA CORPORATION
30. OLD MUTUAL PUBLIC LIMITED COMPANY
33. DODGE & COX
34. LEHMAN BROTHERS HOLDINGS35. SUN LIFE FINANCIAL36. STANDARD LIFE
37. CNCE38. NOMURA HOLDINGS39. THE DEPOSITORY TRUST COMPANY
40. MASSACHUSETTS MUTUAL LIFE INSUR
42. BRANDES INVESTMENT PARTNERS
44. DEPOSIT INSURANCE CORPORATION OF JAPAN
46. BNP PARIBAS
47. AFFILIATED MANAGERS GROUP
48. RESONA HOLDINGS
49. CAPITAL GROUP INTERNATIONAL
50. CHINA PETROCHEMICAL
Here you can also watch his TED talk: