Analysis of inter-industry transaction trends using major trading partner information in securities reports

Abstract

In this study, we use information on major business partners listed in Japanese companies' securities reports to investigate changes in networks between companies over time. Previous research has used network indicators to divide business relationships between industries into core industries and non-core industries in the United States, and investigated whether there is an impact on stock prices and business performance between industries. On the other hand, changes in business relationships between industries over time haven't been sufficiently investigated. Therefore, we create a transaction network based on the ratio of transaction volume to sales for transactions listed in securities reports from 2013 to 2023, and investigated changes in eigenvector centrality by industry. Wholesale trade had the highest centrality, but from 2019 onward, foreign companies have the highest centrality. In addition, industries with high centrality have little turnover, suggesting that the central industry for each industry may be fixed to some extent.