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5 October 2020 Zaihoum Threshold of Credit Risk Contagion within Enterprise Groups
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Abstract

Liu, Y.M.; Cui, Y.Q., and Yu, B.L., 2020. Zaihoum threshold of credit risk contagion within enterprise groups. In: Guido Aldana, P.A. and Kantamaneni, K. (eds.), Advances in Water Resources, Coastal Management, and Marine Science Technology. Journal of Coastal Research, Special Issue No. 104, pp. 198–202. Coconut Creek (Florida), ISSN 0749-0208.

In view of the fact that the assessment of group credit risk is more difficult and complex than that of general enterprises due to the complex and concealed relationship within the enterprise group, and that the structural relationship among the members of the enterprise group is consistent with the scale-free network structure, the mechanism of credit risk contagion within the enterprise group is analyzed by applying grey theory and probability theory under the scale-free network structure. The research shows that the contagion threshold of credit risk within an enterprise group is related to the maximum contagion capacity of the member companies within the group. The stronger the maximum contagion capacity, the smaller the contagion threshold, the more likely the credit risk is to be contagious among the members within the group. The contagion threshold of credit risk among members of a group is independent of the size of the group.

©Coastal Education and Research Foundation, Inc. 2020
Yongming Liu, Yuqing Cui, and Bulei Yu "Zaihoum Threshold of Credit Risk Contagion within Enterprise Groups," Journal of Coastal Research 104(sp1), 198-202, (5 October 2020). https://doi.org/10.2112/JCR-SI104-036.1
Received: 20 November 2019; Accepted: 29 June 2020; Published: 5 October 2020
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