Risks’ cross-contagion between shadow banks based on complex network theory: evidence from China

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Li Jin
Keyword(s):  
Complex Network ◽  
Network Theory ◽  
Structural Equation ◽  
Design Strategies ◽  
Content Type ◽  
Complex Network Theory ◽  
Shadow Banks ◽  
Ex Post ◽  
Credit Network ◽  
Risk Infection

Purpose The purpose of this paper is to analyze the network path and internal mechanism of risks’ cross-contagion between shadow banks and design strategies for preventing risk infection between shadow banks. Design/methodology/approach Using the complex network theory, analyze the mechanism of risks’ cross-contagion between shadow banks from the credit network, business relationship network (BRN) and social network (SN); the cross-contagion mechanism using the structural equation model on the basis of China’s shadow banks is tested; based on the three risk infection paths, the prevention and control strategies for risk infection using the mathematical models of epidemic diseases are designed. Findings There are three network risk contagion paths between shadow banks. One, the credit network, risks are infected crossly mainly through debt and equity relationships; two, the BRN, risks are infected crossly mainly through business network and macro policy transmission; three, investor SN, risks are infected crossly mainly through individual SN and fractal relationships. The following three strategies for preventing risk’s cross-contagion between shadow banks: one, the in advance preventing strategy is more effective than the ex post control strategy; two, increasing the risk management coefficient; three, reducing the number of risk-infected submarkets. Originality/value The research of this study, especially the strategies for preventing the risks’ cross-contagion, could provide theoretical and practical guidance for regulatory authorities in formulating risk supervision measures.

scholarly journals Application of complex network theory in identifying critical elements of CRH2 train system

2020 ◽  
Vol 2 (1) ◽  
pp. 35-52
Author(s):  
Huiru Zhang ◽  
Limin Jia ◽  
Li Wang ◽  
Yong Qin
Keyword(s):  
Complex Network ◽  
Network Theory ◽  
High Speed ◽  
Design Methodology ◽  
Content Type ◽  
Complex Network Theory ◽  
Critical Elements ◽  
Advantages And Disadvantages ◽  
Train Operation ◽  
Train System

Purpose Based on complex network theory, a method for critical elements identification of China Railway High-speed 2 (CRH2) train system is introduced in this paper. Design/methodology/approach First, two methods, reliability theory and complex theory, are introduced, and the advantages and disadvantages for their application in identifying critical elements of high-speed train system are summarized. Second, a multi-layer multi-granularity network model including virtual and actual nodes is proposed, and the corresponding fusion rules for the same nodes in different layers are given. Findings Finally, taking CRH2 train system as an example, the critical elements are identified by using complex network theory, which provides a reference for train operation and maintenance. Originality/value A method of identifying key elements of CRH2 train system based on integrated importance indices is introduced, which is a meaningful extension of the application of complex network theory to identify key components.

A framework for assessing project vulnerability to crises

2019 ◽  
Vol 12 (4) ◽  
pp. 1079-1096 ◽  
Author(s):  
Aimin Wang
Keyword(s):  
Complex Network ◽  
Network Topology ◽  
Network Theory ◽  
Critical Role ◽  
Diffusion Path ◽  
Content Type ◽  
Complex Network Theory ◽  
Systems Perspective ◽  
Project Network

Purpose The purpose of this paper is to propose a framework for assessing the vulnerability of projects to crises. The study seeks to clarify the cascade effects of disruptions leading to project crises and to improve project robustness against crises from a systems perspective. Design/methodology/approach A framework for assessing project vulnerability to crises is developed using complex network theory. The framework includes network representation of project systems, analyzing project network topology, simulating the cascade of unexpected disruptions and assessing project vulnerability. Use of the framework is then illustrated by applying it to a case study of a construction project. Findings Project network topology plays a critical role in resisting crises. By increasing the resilience of the critical tasks and adjusting the structure of a project, the complexity and vulnerability of the project can be reduced, which in turn decreases the occurrence of crises. Research limitations/implications The proposed framework is used in a case study. Further studies of its application to projects in diverse industries would be beneficial to enhance the robustness of the results. Practical implications Project crises can threaten the survival of a project and endanger the organization’s security. The proposed framework helps prevent and mitigate project crises by protecting critical tasks and blocking the diffusion path from a systems perspective. Originality/value This paper presents a novel framework based on complex network theory to assess project vulnerability, which provides a systemic understanding of the cascade of disruptions that lead to project crises.

A manufacturing systems network model for the evaluation of complex manufacturing systems

2014 ◽  
Vol 63 (3) ◽  
pp. 324-340 ◽  
Author(s):  
Till Becker ◽  
Mirja Meyer ◽  
Katja Windt
Keyword(s):  
Complex Network ◽  
Network Model ◽  
Network Theory ◽  
Manufacturing Systems ◽  
Manufacturing System ◽  
Data Sets ◽  
Manufacturing Companies ◽  
Content Type ◽  
Complex Network Theory ◽  
And Performance

Purpose – The topology of manufacturing systems is specified during the design phase and can afterwards only be adjusted at high expense. The purpose of this paper is to exploit the availability of large-scale data sets in manufacturing by applying measures from complex network theory and from classical performance evaluation to investigate the relation between structure and performance. Design/methodology/approach – The paper develops a manufacturing system network model that is composed of measures from complex network theory. The analysis is based on six company data sets containing up to half a million operation records. The paper uses the network model as a straightforward approach to assess the manufacturing systems and to evaluate the impact of topological measures on fundamental performance figures, e.g., work in process or lateness. Findings – The paper able to show that the manufacturing systems network model is a low-effort approach to quickly assess a manufacturing system. Additionally, the paper demonstrates that manufacturing networks display distinct, non-random network characteristics on a network-wide scale and that the relations between topological and performance key figures are non-linear. Research limitations/implications – The sample consists of six data sets from Germany-based manufacturing companies. As the model is universal, it can easily be applied to further data sets from any industry. Practical implications – The model can be utilized to quickly analyze large data sets without employing classical methods (e.g. simulation studies) which require time-intensive modeling and execution. Originality/value – This paper explores for the first time the application of network figures in manufacturing systems in relation to performance figures by using real data from manufacturing companies.

scholarly journals Ecological Network Optimization in Urban Central District Based on Complex Network Theory: A Case Study with the Urban Central District of Harbin

2021 ◽  
Vol 18 (4) ◽  
pp. 1427
Author(s):  
Shuang Song ◽  
Dawei Xu ◽  
Shanshan Hu ◽  
Mengxi Shi
Keyword(s):  
Complex Network ◽  
Network Optimization ◽  
Network Theory ◽  
Habitat Destruction ◽  
Landscape Patterns ◽  
Ecological Network ◽  
Complex Network Theory ◽  
Ecological Corridors ◽  
Low Degree ◽  
Central District

Habitat destruction and declining ecosystem service levels caused by urban expansion have led to increased ecological risks in cities, and ecological network optimization has become the main way to resolve this contradiction. Here, we used landscape patterns, meteorological and hydrological data as data sources, applied the complex network theory, landscape ecology, and spatial analysis technology, a quantitative analysis of the current state of landscape pattern characteristics in the central district of Harbin was conducted. The minimum cumulative resistance was used to extract the ecological network of the study area. Optimized the ecological network by edge-adding of the complex network theory, compared the optimizing effects of different edge-adding strategies by using robustness analysis, and put forward an effective way to optimize the ecological network of the study area. The results demonstrate that: The ecological patches of Daowai, Xiangfang, Nangang, and other old districts in the study area are small in size, fewer in number, strongly fragmented, with a single external morphology, and high internal porosity. While the ecological patches in the new districts of Songbei, Hulan, and Acheng have a relatively good foundation. And ecological network connectivity in the study area is generally poor, the ecological corridors are relatively sparse and scattered, the connections between various ecological sources of the corridors are not close. Comparing different edge-adding strategies of complex network theory, the low-degree-first strategy has the most outstanding performance in the robustness test. The low-degree-first strategy was used to optimize the ecological network of the study area, 43 ecological corridors are added. After the optimization, the large and the small ecological corridors are evenly distributed to form a complete network, the optimized ecological network will be significantly more connected, resilient, and resistant to interference, the ecological flow transmission will be more efficient.

scholarly journals The South African Banking Director Network: An Investigation Into Interlocking Directorships Using Social Network Analysis (SNA)

2014 ◽  
Vol 13 (5) ◽  
pp. 963
Author(s):  
Burgert A. Senekal ◽  
Karlien Stemmet
Keyword(s):  
Social Network ◽  
Social Network Analysis ◽  
Network Analysis ◽  
Complex Systems ◽  
South African ◽  
Complex Network ◽  
Network Theory ◽  
Complex Network Theory ◽  
International Trends ◽  
Director Network

The theory of complex systems has gained significant ground in recent years, and with it, complex network theory has become an essential approach to complex systems. This study follows international trends in examining the interlocking South African bank director network using social network analysis (SNA), which is shown to be a highly connected social network that has ties to many South African industries, including healthcare, mining, and education. The most highly connected directors and companies are identified, along with those that are most central to the network, and those that serve important bridging functions in facilitating network coherence. As this study is exploratory, numerous suggestions are also made for further research.

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