FF.norm.both {FinNet}

Create a complete normalised-valued firm-firm (FF) matrix

Description

Function to create a normalised-valued firm-firm (FF) matrix based on both common ownership and board interlocks

Usage

FF.norm.both(
  ...,
  id_as_firm_name = NULL,
  Matrix = NULL,
  self_ties = FALSE,
  combining = "sum"
)

Arguments

...

Either multiple objects of class firm or a list of such objects

id_as_firm_name

Whether to use the ticker as the firm's name. Defaults to TRUE if all firms' id is neither NULL nor NA.

Matrix

Whether to use the Matrix package. Defaults to TRUE when any matrix in the pipeline contains more than 10,000 cells and the package is installed.

self_ties

Whether to allow self-ties (a 'loop' in graph theory). Defaults to FALSE.

combining

How to combine the FF matrix for managers and that for owners. Possible values:

• sum;

• mean or average;

• min;

• max;

Details

The ties' value will reflect the count of common owners and membership depending on combining: -sum: sum of the shares (normalised on 2); -mean or average: average of the shares (normalised on 1); -min: minimum of the shares (normalised on 1); -max: maximum of the shares (normalised on 1).

Value

A matrix object of class financial_matrix(possibly using the Matrix package)

Author(s)

Telarico, Fabio Ashtar

See Also

FF FF.binary.both FF.naive.both

Examples

# Create the complete normalised firm-firm matrix for the companies held by Berkshire Hathaway
data('firms_BKB')
FF <- FF.norm.both(firms_BKB)