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Internal or external control? How to respond to credit risk contagion in complex enterprises network
International Review of Financial Analysis ( IF 8.235 ) Pub Date : 2023-02-25 , DOI: 10.1016/j.irfa.2023.102604
Qian Qian , Xiangrui Chao , Hairong Feng

This study investigates whether and how the two risk control strategies inhibit credit risk contagion among enterprises in the network. Learning from the corporate governance of enterprises, we propose internal and external strategies, respectively. Moreover, two improved epidemic models containing internal and external strategies strategy are established to investigate the impact of the two strategies on the risk contagion. The control effect of internal and external strategies is compared through simulation analysis. The results indicate that the enterprise's financial health, the cost and ability to apply the strategies are important factors affecting the control effect of strategies. For enterprises with general financial status (susceptible enterprise), when the costs of the two strategies are the same, they should choose external strategies. For enterprises with good financial status (immune enterprises), the external strategy is a more sensible choice. Our study provides new insights into controlling risk contagion in enterprise networks.



中文翻译:

内部控制还是外部控制?如何应对复杂企业网络中的信用风险传染

本研究调查了两种风险控制策略是否以及如何抑制网络中企业之间的信用风险传染。借鉴企业的公司治理,我们分别提出内部和外部战略。此外,建立了两个包含内部策略和外部策略的改进流行病模型,以研究这两种策略对风险传染的影响。通过仿真分析比较了内部策略和外部策略的控制效果。结果表明,企业的财务健康状况、成本和战略应用能力是影响战略控制效果的重要因素。对于财务状况一般的企业(易感企业),当两种策略的成本相同时,他们应该选择外部策略。对于财务状况良好的企业(有免疫力的企业)来说,外部战略是更明智的选择。我们的研究为控制企业网络中的风险传染提供了新的见解。

更新日期:2023-02-25
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