Periodic information enhancing and controlling stability of complex corporate financial systems

Abstract We explore the mechanism and control behavior of how periodic information affects the stability of complex corporate financial systems from two viewpoints: the corporate life cycle and the stability of financial leverage risk. A complex corporate financial system model with correlated noise and periodic driving is proposed. Furthermore, two stability indicators are proposed to measure the stability of the corporate life cycle and the risk of corporate financial leverage. Stochastic simulation results show that enhancing the intensity and frequency of controllable periodic information can improve system stability. The stability of complex corporate life cycles and financial leverage risks exhibits opposite behaviors in terms of noise correlation. In addition, it is observed that there are specific threshold values of system parameters, and the relationship with the intensity of periodic information shows non-monotonic characteristics, manifesting peculiar phenomena and transition behaviors. Finally, by comparing with actual financial data, the proposed model is verified to be superior to the benchmark model.

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Publication Details

Journal
Europhysics Letters (EPL)
Published
2024-10-01
DOI
https://doi.org/10.1209/0295-5075/ad8373
Primary Topic
Complex Systems and Time Series Analysis
Type
article
Field-Weighted Citation Impact
0.00

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article

Periodic information enhancing and controlling stability of complex corporate financial systems

Guang-Yan Zhong, Jiangcheng Li
Europhysics Letters (EPL)
Complex Systems and Time Series Analysis
article

Periodic information enhancing and controlling stability of complex corporate financial systems

Guang-Yan Zhong, Jiangcheng Li
article en

Abstract

Abstract We explore the mechanism and control behavior of how periodic information affects the stability of complex corporate financial systems from two viewpoints: the corporate life cycle and the stability of financial leverage risk. A complex corporate financial system model with correlated noise and periodic driving is proposed. Furthermore, two stability indicators are proposed to measure the stability of the corporate life cycle and the risk of corporate financial leverage. Stochastic simulation results show that enhancing the intensity and frequency of controllable periodic information can improve system stability. The stability of complex corporate life cycles and financial leverage risks exhibits opposite behaviors in terms of noise correlation. In addition, it is observed that there are specific threshold values of system parameters, and the relationship with the intensity of periodic information shows non-monotonic characteristics, manifesting peculiar phenomena and transition behaviors. Finally, by comparing with actual financial data, the proposed model is verified to be superior to the benchmark model.

Europhysics Letters (EPL)Vol. 148(2)
University of Finance and Economics (MN), Yunnan University of Finance And Economics (CN)
National Natural Science Foundation of China, Applied Basic Research Foundation of Yunnan Province
Openalex Percentile: Top 79%
Complex Systems and Time Series Analysis
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Periodic information enhancing and controlling stability of complex corporate financial systems — Guang-Yan Zhong, Jiangcheng Li · Europhysics Letters (EPL) (2024) | TGRS Research Map | TGRS