Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach
Interactions of entrepreneurs through social networks provide an available path for corporate risk contagions. However, the issue how entrepreneurs’ social networks influence on corporate risk contagion is still received limited attention from scholars. In this study, a framework is proposed to desc...
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| Format: | Article |
| Language: | English |
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Wiley
2020-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2020/6679502 |
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| author | Yang Yang Qian Qian Zheng Li |
| author_facet | Yang Yang Qian Qian Zheng Li |
| author_sort | Yang Yang |
| collection | DOAJ |
| description | Interactions of entrepreneurs through social networks provide an available path for corporate risk contagions. However, the issue how entrepreneurs’ social networks influence on corporate risk contagion is still received limited attention from scholars. In this study, a framework is proposed to describe entrepreneurs’ interaction and corporate value creation. The main results of multiagent simulations indicate the following. First, either weak ties or strong connections of social networks can enhance density of corporate risk contagion. However, only strong connections can be moderated by entrepreneurs’ risk preference. Second, weak ties improve risk exposure of individual corporations, while strong connections may probably decrease systematical risk of the market. Third, weak ties are important for mature corporations to achieve business success. However, for startups, strong connections are more valuable to maintain. The findings of this study not only provide theoretical support from some widely accepted economic phenomenon but also provide explanations for conflicting results from some previous literatures. |
| format | Article |
| id | doaj-art-518a1fe3ae3d4d75afb674f1f0993812 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-518a1fe3ae3d4d75afb674f1f09938122025-02-03T06:07:41ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/66795026679502Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation ApproachYang Yang0Qian Qian1Zheng Li2School of Economic Mathematics, Southwestern University of Finance and Economics, No. 555 Liutai Avenue, Wenjiang District, Chengdu 611130, ChinaSchool of Business, Sichuan Normal University, Chengdu 610101, ChinaSchool of Economic Mathematics, Southwestern University of Finance and Economics, No. 555 Liutai Avenue, Wenjiang District, Chengdu 611130, ChinaInteractions of entrepreneurs through social networks provide an available path for corporate risk contagions. However, the issue how entrepreneurs’ social networks influence on corporate risk contagion is still received limited attention from scholars. In this study, a framework is proposed to describe entrepreneurs’ interaction and corporate value creation. The main results of multiagent simulations indicate the following. First, either weak ties or strong connections of social networks can enhance density of corporate risk contagion. However, only strong connections can be moderated by entrepreneurs’ risk preference. Second, weak ties improve risk exposure of individual corporations, while strong connections may probably decrease systematical risk of the market. Third, weak ties are important for mature corporations to achieve business success. However, for startups, strong connections are more valuable to maintain. The findings of this study not only provide theoretical support from some widely accepted economic phenomenon but also provide explanations for conflicting results from some previous literatures.http://dx.doi.org/10.1155/2020/6679502 |
| spellingShingle | Yang Yang Qian Qian Zheng Li Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach Complexity |
| title | Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach |
| title_full | Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach |
| title_fullStr | Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach |
| title_full_unstemmed | Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach |
| title_short | Entrepreneurs’ Social Network and Corporate Risk Contagion: A Dynamic Evaluation and Simulation Approach |
| title_sort | entrepreneurs social network and corporate risk contagion a dynamic evaluation and simulation approach |
| url | http://dx.doi.org/10.1155/2020/6679502 |
| work_keys_str_mv | AT yangyang entrepreneurssocialnetworkandcorporateriskcontagionadynamicevaluationandsimulationapproach AT qianqian entrepreneurssocialnetworkandcorporateriskcontagionadynamicevaluationandsimulationapproach AT zhengli entrepreneurssocialnetworkandcorporateriskcontagionadynamicevaluationandsimulationapproach |