Group12 Report
Group 12 - Cross Shareholding
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Contents
Executive Summary
During the visual course, the
Cross shareholding is a situation in which a corporation owns stock in another company. So, technically, corporations own securities issued by other corporations. Cross shareholding can lead to double counting, whereby the equity of each company is counted twice when determining value. When double counting occurs, the security's value is counted twice, which can result in estimating the wrong value of the two companies.
Cross shareholding is very common in corporate world. Sometimes, there can be more than 10 companies involved and it is very difficult for investors and regulators to track who owns how much.
In this project, our group choose 1 or 2 big groups of companies from Korea and China with heavy cross shareholding between each other and conduct visualization and relationship analysis on their networks using R-Shiny so that people can have better picture of these companies’ network and easier to understand relationship between companies.
