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Anonymous
147 corporations run the world 2015-12-28 16:28:15 Post No. 1015637
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147 corporations run the world 2015-12-28 16:28:15 Post No. 1015637
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Is this true /biz/?
https://www.newscientist.com/article/mg21228354-500-revealed-the-capitalist-network-that-runs-the-world/
Previous studies have found that a few TNCs own large chunks of the world’s economy, but they included only a limited number of companies and omitted indirect ownerships, so could not say how this affected the global economy – whether it made it more or less stable, for instance.
The Zurich team can. From Orbis 2007, a database listing 37 million companies and investors worldwide, they pulled out all 43,060 TNCs and the share ownerships linking them. Then they constructed a model of which companies controlled others through shareholding networks, coupled with each company’s operating revenues, to map the structure of economic power.
The work, to be published in PLoS One, revealed a core of 1318 companies with interlocking ownerships (see image). Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What’s more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world’s large blue chip and manufacturing firms – the “real” economy – representing a further 60 per cent of global revenues.
When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.
Paper
http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf
Forbes linked the same research
http://www.forbes.com/sites/bruceupbin/2011/10/22/the-147-companies-that-control-everything/
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Yes and no.
Imagine you're a bank and have billions to invest. Then you can pretty much buy lots of businesses. But you don't want to buy them and get too involved in them, you just want to spread your risks around. So you buy chunks of thousands of companies.
And all major businesses do this. Banks, insurance companies, pension funds, oil companies, big tech companies, food companies etc. They cant just keep sitting on their cash, they have to do something with it. So you end up with a couple companies that own everything on paper.
Buying companies too fast might inflate the prices so you want to avoid that. But selling the stocks might be just as troublesome as that means you might crash the market value of the stocks of that business. And the stocks will be worthless before you sold everything. So you just hold on to your investments. Or buy/sell them very slowly.
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Power law distributions are just a fact of nature
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>>1015644
how hard could it be for all the 147 companies to coordinate their actions and control together the rest?
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>50 of the 147 companies that run the world
Why doesn't it just list all goddamn 147?
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>>1015704
It doesn't take a lot. Imagine you go to a shareholders meeting of a billion dollar business. And there are all kinds of rich people and investors with 0,05% of the shares each. And you own and your buddies own 2% of the shares. Then you pretty much decide what's going to happen. This sometimes happens with businesses where the original owners who tend to be major shareholders are long gone.
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Major corporations are a para-state apparatus. They can only survive for so long as they serve power.
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>>1015637
>Retort: The 147 Companies That Run The World? They're You.
http://www.forbes.com/sites/ericsavitz/2011/10/24/retort-the-147-companies-that-run-the-world-theyre-you/
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>>1015728
Virtually all of these firms are asset management oriented and so they buy shares in every company and hold them for investors like us (well, me at least).
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>>1015637
why the antiphon album art
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