Macroeconomic Concentration Index of Corporate Sector Companies

by | Apr 10, 2024 | DOI 2023 Selected

MikhailΒ Pomazanov – National Research University Higher School of Economics, st. Myasnitskaya 20, 101000 Moscow, Russia

NadezhdaΒ Loginova – National Research University Higher School of Economics, st. Myasnitskaya 20, 101000 Moscow, Russia

Keywords:Β  Β  Β  Β  Β  Β  Β  Β  Β  Β  Concentration;
Herfindahl–Hirschman index;
Sustainable development;
Corporation;
National scale

DOI: https://doi.org/10.31410/ERAZ.S.P.2023.51

Abstract: The high concentration of assets and revenues of corporations or large enterprises on a national scale represents a risk that can hinder sustainΒ­able development. For instance, in terms of a bank’s loan portfolio concentraΒ­tion risk is so crucial that it is a separate significant type of risk in addition to credit risk. In the proposed article a corporate sector concentration index was constructed for countries for which revenue data of TOP-50 or TOP-100 largΒ­est enterprises is accessible from open sources. The index is based on the reΒ­vealed pattern of decrease in the volume indicator of the company (revenue, assets) of the order of 1⁄n^z, where n is the serial number of the companies ranked in descending order of the indicator, and z is a country-specific paΒ­rameter. Based on all possibly available open statistics, providing data on 30 countries, the consistency of the statistical hypothesis about the dependence of the corporate sector concentration index on the Human Development InΒ­dex and Ease of doing business is substantiated.

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9th International Scientific ERAZ Conference – ERAZ 2023 – Selected Papers: KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, hybrid – online, virtually and in person, Prague, Czech Republic, June 1, 2023

ERAZ Selected Papers published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ERAZ conference partners: Faculty of Logistics, University of Maribor, Maribor (Slovenia); University of National and World Economy – UNWE, Sofia (Bulgaria); Center for Political Research and Documentation (KEPET), Research Laboratory of the Department of Political Science of University of Crete (Greece); Institute of Public Finance – Zagreb (Croatia); Faculty of Tourism and Hospitality Ohrid, University of St. Kliment Ohridski from Bitola (North Macedonia)

ERAZ Conference 2023 Selected Papers: ISBN 978-86-80194-73-8, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.S.P.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.Β 

Suggested citation

Pomazanov, M., & Loginova, N. (2023). Macroeconomic Concentration Index of Corporate Sector Companies. In V. Bevanda (Ed.), ERAZ Conference – Knowlegde Based Sustainable Development: Vol 9. Selected Papers (pp. 51-62). Association of Economists and Managers of the Balkans. https://doi.org/10.31410/ERAZ.S.P.2023.51

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