Abstract
The Brexit referendum has impacted both the UK and the EU economies in several ways. The uncertainty around Brexit highlighted the importance of a relationships network between directors of companies to access information and resources that are necessary for optimal decision making. It is difficult to develop informed business and economy policies without a deep understanding of the magnitude of Brexit on business-to-business relationships with EU-based firms. This study aims to analyze the impact of the passage of the Brexit referendum on the evolution of board interlock networks. The study uses network analysis to measure the evolution of UK-EU directors’ relationships over the Brexit period, predominantly between the 2010 and 2020 period. The study models the structural changes in dynamic networks by converting this evolving network into static graphs on yearly basis. The analysis indicates that links formation in the UK is affected negatively by the Brexit referendum. It also has a negative impact on forming a new link with potential companies’ directors in the EU, but it shows a rising tendency for shared affiliation bias analysis. Interestingly, the contradicted trend in 2007, the number of directors’ connection in consumer service and food & drug sectors was decreasing in the UK while rocketing in the EU. Doi: 10.28991/ESJ-2022-06-01-01 Full Text: PDF
Highlights
The Brexit referendum in 2016 with 51.9% of voters agreed to leave the European Union (EU) has affected economy sector
Since the graphs demonstrate a negative trend of chances of making a new link in the EU region after Brexit referendum for cyclic closure bias analysis both for the length of 2 and, while it shows a rising tendency for shared affiliations bias after 2016
It is arguably that the EU region negatively affected by the Brexit referendum
Summary
The Brexit referendum in 2016 with 51.9% of voters agreed to leave the European Union (EU) has affected economy sector. Withers et al (2018) and Lang & Lockhart (1990) [6, 11] proved that social network could be used to find the impact of environmental changes on the evolution of the board interlock network. The researchers analyzed the effect of UK Brexit to the evolution of connection between directors in UK and EU, discovered the sector most affected and having a significant impact after Brexit. The inspiration to pursue this study stems directly from the precursor to this study conducted by Shahgholian, et al (2012) where the authors examined the evolution of UK directors’ social network They found that directors who are not connected directly in specific year and have only a single intermediary between them are more likely to form a connection in the future than the directors with two intermediaries [15].
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