Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models

In the context of an ever-evolving global economy, ASEAN companies face dynamic systemic risk that reshapes their financial interrelationships. This study examines the transmission of these risks using advanced graph theory techniques, particularly the measurement of eigenvector centrality based on...

Full description

Saved in:
Bibliographic Details
Main Authors: Marc Cortés Rufé, Jordi Martí Pidelaserra, Cecilia Kindelán Amorrich
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/5/95
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In the context of an ever-evolving global economy, ASEAN companies face dynamic systemic risk that reshapes their financial interrelationships. This study examines the transmission of these risks using advanced graph theory techniques, particularly the measurement of eigenvector centrality based on Euclidean distances, combined with a hidden model that incorporates macroeconomic variables, such as GDP. The research focuses on identifying critical nodes within the corporate network, evaluating their contagion potential—both in terms of reinforcing resilience and amplifying vulnerabilities—and analyzing the influence of external factors on the network’s structure and behavior. The findings offer an innovative framework for managing systemic risk and provide strategic guidelines for the formulation of economic policies in emerging ASEAN markets.
ISSN:2227-9091