This study analyzes ownership networks, whereby ties between owners are defined by common ownership of one or several companies, in order to analyze changes in these ties due to the restructuring events that occurred in Brazil from 1995 to 2003 (privatizations and entry of foreign capital). Using network analysis, it is observed that owners’ networks are characterized as "small worlds": while there are groups of owners extensively connected with one another, there are some few central actors that help connect different groups. Due to their strategic position in the network, such owners-chiefly, pension funds and the government-could exploit acquisition opportunities resulting from the restructuring of the economy. Consequently, contrary to interpretations usually found in the literature, in the period under analysis the position of certain local owners, vis-à-vis foreign firms and investors, was apparently reinforced.
Small worlds; network analysis; corporate networks; ownership; privatizations
