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Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models

Author

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  • Marc Cortés Rufé

    (Department of Business, University of Barcelona, 08007 Barcelona, Spain)

  • Jordi Martí Pidelaserra

    (Department of Business, University of Barcelona, 08007 Barcelona, Spain)

  • Cecilia Kindelán Amorrich

    (ESIC Business & Marketing School, ESIC University, 28001 Madrid, Spain)

Abstract

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.

Suggested Citation

  • Marc Cortés Rufé & Jordi Martí Pidelaserra & Cecilia Kindelán Amorrich, 2025. "Uncovering Systemic Risk in ASEAN Corporations: A Framework Based on Graph Theory and Hidden Models," Risks, MDPI, vol. 13(5), pages 1-22, May.
    • Handle: RePEc:gam:jrisks:v:13:y:2025:i:5:p:95-:d:1654518
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    References listed on IDEAS

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    1. Cerqueti, Roy & Ciciretti, Rocco & Dalò, Ambrogio & Nicolosi, Marco, 2021. "ESG investing: A chance to reduce systemic risk," Journal of Financial Stability, Elsevier, vol. 54(C).
    2. Egidijus Bikas & Evelina Glinskytė, 2021. "Financial Factors Determining the Investment Behavior of Lithuanian Business Companies," Economies, MDPI, vol. 9(2), pages 1-19, April.
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