The Equilibrium and Risk Analysis of Internet Finance under Social Networks Influence
The development of the Internet finance makes the financial network become increasingly complex. Considering of the characteristics of Internet finance and relationship level, a framework including multitiered Internet financial network with investors, Internet financial intermediaries, traditional...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
International Institute of Informatics and Cybernetics
2018-10-01
|
| Series: | Journal of Systemics, Cybernetics and Informatics |
| Subjects: | |
| Online Access: | http://www.iiisci.org/Journal/CV$/sci/pdfs/RA994ZB18.pdf
|
| _version_ | 1819160437509324800 |
|---|---|
| author | Chuanmin Mi Qing Zhang Ching-Torng Lin |
| author_facet | Chuanmin Mi Qing Zhang Ching-Torng Lin |
| author_sort | Chuanmin Mi |
| collection | DOAJ |
| description | The development of the Internet finance makes the financial network become increasingly complex. Considering of the characteristics of Internet finance and relationship level, a framework including multitiered Internet financial network with investors, Internet financial intermediaries, traditional financial intermediaries and investees was proposed. Increasing relationship levels in our framework are assumed to reduce transaction costs as well as risk and to have some additional value for the decision-makers. From the perspective of cash flow, the competitive and cooperative relationships between various decision-makers were explicated, as well as their behavior and optimality conditions. We found that the decision-makers compete within a tier and cooperate between ties to optimize the whole Internet financial supernetwork. Under the Internet environment, the various decision makers face greater credit risk and operational risk, credit risk and operational risk brought about by the problem is more outstanding. The relationship level has little effect on investors' decision, but it mainly influences the behavior of Internet financial intermediaries and the traditional financial intermediaries. |
| first_indexed | 2024-12-22T16:56:26Z |
| format | Article |
| id | doaj.art-428dddf1342d495c9aa38e24558a1fe4 |
| institution | Directory Open Access Journal |
| issn | 1690-4524 |
| language | English |
| last_indexed | 2024-12-22T16:56:26Z |
| publishDate | 2018-10-01 |
| publisher | International Institute of Informatics and Cybernetics |
| record_format | Article |
| series | Journal of Systemics, Cybernetics and Informatics |
| spelling | doaj.art-428dddf1342d495c9aa38e24558a1fe42022-12-21T18:19:26ZengInternational Institute of Informatics and CyberneticsJournal of Systemics, Cybernetics and Informatics1690-45242018-10-011653943The Equilibrium and Risk Analysis of Internet Finance under Social Networks InfluenceChuanmin MiQing ZhangChing-Torng LinThe development of the Internet finance makes the financial network become increasingly complex. Considering of the characteristics of Internet finance and relationship level, a framework including multitiered Internet financial network with investors, Internet financial intermediaries, traditional financial intermediaries and investees was proposed. Increasing relationship levels in our framework are assumed to reduce transaction costs as well as risk and to have some additional value for the decision-makers. From the perspective of cash flow, the competitive and cooperative relationships between various decision-makers were explicated, as well as their behavior and optimality conditions. We found that the decision-makers compete within a tier and cooperate between ties to optimize the whole Internet financial supernetwork. Under the Internet environment, the various decision makers face greater credit risk and operational risk, credit risk and operational risk brought about by the problem is more outstanding. The relationship level has little effect on investors' decision, but it mainly influences the behavior of Internet financial intermediaries and the traditional financial intermediaries.http://www.iiisci.org/Journal/CV$/sci/pdfs/RA994ZB18.pdf internet financerisk managementsupernetworkgeneral equilibrium |
| spellingShingle | Chuanmin Mi Qing Zhang Ching-Torng Lin The Equilibrium and Risk Analysis of Internet Finance under Social Networks Influence Journal of Systemics, Cybernetics and Informatics internet finance risk management supernetwork general equilibrium |
| title | The Equilibrium and Risk Analysis of Internet Finance under Social Networks Influence |
| title_full | The Equilibrium and Risk Analysis of Internet Finance under Social Networks Influence |
| title_fullStr | The Equilibrium and Risk Analysis of Internet Finance under Social Networks Influence |
| title_full_unstemmed | The Equilibrium and Risk Analysis of Internet Finance under Social Networks Influence |
| title_short | The Equilibrium and Risk Analysis of Internet Finance under Social Networks Influence |
| title_sort | equilibrium and risk analysis of internet finance under social networks influence |
| topic | internet finance risk management supernetwork general equilibrium |
| url | http://www.iiisci.org/Journal/CV$/sci/pdfs/RA994ZB18.pdf
|
| work_keys_str_mv | AT chuanminmi theequilibriumandriskanalysisofinternetfinanceundersocialnetworksinfluence AT qingzhang theequilibriumandriskanalysisofinternetfinanceundersocialnetworksinfluence AT chingtornglin theequilibriumandriskanalysisofinternetfinanceundersocialnetworksinfluence AT chuanminmi equilibriumandriskanalysisofinternetfinanceundersocialnetworksinfluence AT qingzhang equilibriumandriskanalysisofinternetfinanceundersocialnetworksinfluence AT chingtornglin equilibriumandriskanalysisofinternetfinanceundersocialnetworksinfluence |