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...

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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
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author Marc Cortés Rufé
Jordi Martí Pidelaserra
Cecilia Kindelán Amorrich
author_facet Marc Cortés Rufé
Jordi Martí Pidelaserra
Cecilia Kindelán Amorrich
author_sort Marc Cortés Rufé
collection DOAJ
description 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.
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spelling doaj-art-e8b348bf9d234d31ba136213eebc23f62025-08-20T02:33:58ZengMDPI AGRisks2227-90912025-05-011359510.3390/risks13050095Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden ModelsMarc Cortés Rufé0Jordi Martí Pidelaserra1Cecilia Kindelán Amorrich2Department of Business, University of Barcelona, 08007 Barcelona, SpainDepartment of Business, University of Barcelona, 08007 Barcelona, SpainESIC Business & Marketing School, ESIC University, 28001 Madrid, SpainIn 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.https://www.mdpi.com/2227-9091/13/5/95systemic riskASEANfinancial contagionnetwork analysis
spellingShingle Marc Cortés Rufé
Jordi Martí Pidelaserra
Cecilia Kindelán Amorrich
Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models
Risks
systemic risk
ASEAN
financial contagion
network analysis
title Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models
title_full Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models
title_fullStr Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models
title_full_unstemmed Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models
title_short Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models
title_sort uncovering systemic risk in asean corporations a framework based on graph theory and hidden models
topic systemic risk
ASEAN
financial contagion
network analysis
url https://www.mdpi.com/2227-9091/13/5/95
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AT ceciliakindelanamorrich uncoveringsystemicriskinaseancorporationsaframeworkbasedongraphtheoryandhiddenmodels