Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model

Recently, the phenomenon of economic ‘moving from reality to virtual’ has attracted widespread attention. Based on the principle of infectious disease dynamics, this study constructs a SIRS model to examine the contagion effect of corporate financialisation. Using Chinese manufacturing companies as...

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Autores principales:	Danfeng Zhang, Haiying Pan
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	corporate financialisation sirs model contagion effect governance strategy Economic growth, development, planning HD72-88 Regional economics. Space in economics HT388
Acceso en línea:	https://doaj.org/article/fbf309c7d6b9476e812416b223bc7bcd
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spelling	oai:doaj.org-article:fbf309c7d6b9476e812416b223bc7bcd2021-11-17T14:21:55ZAnalysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model1331-677X1848-966410.1080/1331677X.2021.1997620https://doaj.org/article/fbf309c7d6b9476e812416b223bc7bcd2021-10-01T00:00:00Zhttp://dx.doi.org/10.1080/1331677X.2021.1997620https://doaj.org/toc/1331-677Xhttps://doaj.org/toc/1848-9664Recently, the phenomenon of economic ‘moving from reality to virtual’ has attracted widespread attention. Based on the principle of infectious disease dynamics, this study constructs a SIRS model to examine the contagion effect of corporate financialisation. Using Chinese manufacturing companies as samples, we verify the contagion of corporate financialisation before performing a simulation analysis and proposing strategies to address financial contagion risks. The results shows that corporate financialisation is contagious in the sample companies. This feature depends on the initial contagion conditions and threshold. When the degree of corporate financialisation does not meet the initial contagion conditions and is within the contagion threshold, contagion will not occur. Otherwise, financialisation behaviour will cause mutual contagion and produce a contagious effect. Meanwhile, the higher the contagion and the second conversion rates of financialisation, the stronger the contagion effect. The larger the financial reversal and self-recovery rates, the weaker the contagion effect. Finally, we propose Multi-dimensional governance strategies of financial contagion risk. This study explores the formation mechanism of corporate financialisation from a new perspective to provide ideas for the financial governance of enterprises and promote benign interaction between entities and finance.Danfeng ZhangHaiying PanTaylor & Francis Grouparticlecorporate financialisationsirs modelcontagion effectgovernance strategyEconomic growth, development, planningHD72-88Regional economics. Space in economicsHT388ENEkonomska Istraživanja, Vol 0, Iss 0, Pp 1-17 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	corporate financialisation sirs model contagion effect governance strategy Economic growth, development, planning HD72-88 Regional economics. Space in economics HT388
spellingShingle	corporate financialisation sirs model contagion effect governance strategy Economic growth, development, planning HD72-88 Regional economics. Space in economics HT388 Danfeng Zhang Haiying Pan Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model
description	Recently, the phenomenon of economic ‘moving from reality to virtual’ has attracted widespread attention. Based on the principle of infectious disease dynamics, this study constructs a SIRS model to examine the contagion effect of corporate financialisation. Using Chinese manufacturing companies as samples, we verify the contagion of corporate financialisation before performing a simulation analysis and proposing strategies to address financial contagion risks. The results shows that corporate financialisation is contagious in the sample companies. This feature depends on the initial contagion conditions and threshold. When the degree of corporate financialisation does not meet the initial contagion conditions and is within the contagion threshold, contagion will not occur. Otherwise, financialisation behaviour will cause mutual contagion and produce a contagious effect. Meanwhile, the higher the contagion and the second conversion rates of financialisation, the stronger the contagion effect. The larger the financial reversal and self-recovery rates, the weaker the contagion effect. Finally, we propose Multi-dimensional governance strategies of financial contagion risk. This study explores the formation mechanism of corporate financialisation from a new perspective to provide ideas for the financial governance of enterprises and promote benign interaction between entities and finance.
format	article
author	Danfeng Zhang Haiying Pan
author_facet	Danfeng Zhang Haiying Pan
author_sort	Danfeng Zhang
title	Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model
title_short	Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model
title_full	Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model
title_fullStr	Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model
title_full_unstemmed	Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model
title_sort	analysing the contagion effect and governance strategy of corporate financialisation based on a sirs model
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/fbf309c7d6b9476e812416b223bc7bcd
work_keys_str_mv	AT danfengzhang analysingthecontagioneffectandgovernancestrategyofcorporatefinancialisationbasedonasirsmodel AT haiyingpan analysingthecontagioneffectandgovernancestrategyofcorporatefinancialisationbasedonasirsmodel
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Analysing the contagion effect and governance strategy of corporate financialisation based on a SIRS model

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