Group12 Report
Group 12 - Cross Shareholding
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Contents
Executive Summary
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.
Background
The stock markets are not the same across the countries. In China, there are two stock markets, one is in Shanghai and the other is in Shenzhen. However, there are only one stock market in Korea. According to what learnt from visualization class, our group decided to do the visualization analysis for the top stocks listed in China and Korea. We choose the top 5 companies in China which are Industrial and Commercial Bank, PetroChina, Agricultural Bank, Bank of China, and PingAn insurance. For Korea, we choose Samsung group as the analyzed target.
However, after go though all the data, our group found that the Stocks in China could not show things straight forward to us. We found only several big national companies hold the share of the top 5 companies. In contrast, Samsung group provide a better view of the visualization, which we can find many loops between several stocks.
Finally, our group will only focus on the Samsung group visualization.
