Abstract
Language | English |
---|---|
Article number | 533 |
Number of pages | 17 |
Journal | Sustainability |
Volume | 10 |
Issue number | 2 |
DOIs | |
State | Published - 16 Feb 2018 |
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Bibliographical note
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).Keywords
- risk losses
- agribusiness
- minimum spanning trees
- copula
- dependence structure
Cite this
A Hybrid Approach to Explore the Risk Dependency Structure among Agribusiness Firms. / Lei , Zhimei; Wu , Kuo-Jui; Cui, Li; Lim, Ming K.
In: Sustainability, Vol. 10, No. 2, 533, 16.02.2018.Research output: Contribution to journal › Article
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TY - JOUR
T1 - A Hybrid Approach to Explore the Risk Dependency Structure among Agribusiness Firms
AU - Lei ,Zhimei
AU - Wu ,Kuo-Jui
AU - Cui,Li
AU - Lim,Ming K
N1 - This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
PY - 2018/2/16
Y1 - 2018/2/16
N2 - Although the risk management of agricultural firms is important, studies on the extreme risk dependence among agribusiness firms are minimal due to the diversity and complexity of the risks faced by agricultural firms. In this study, we developed a hybrid approach to analyse and uncover the potential risk dependence among agricultural firms. We examined thirty-two agricultural companies to study their dependence structure for risk losses. Three primary findings emerged. First, risk dependence is strong with an average value of 0.96. Second, the dependence structure is hierarchical and includes two network communities. Third, some key agricultural firms were identified in the dependence structure. These key firms are critical for the transmission of negative impacts across agricultural firms. Correspondingly, we suggest measures and strategies (such as improving the level of technological innovation and joint risk resistance capability) to reduce the impact of risk dependence.
AB - Although the risk management of agricultural firms is important, studies on the extreme risk dependence among agribusiness firms are minimal due to the diversity and complexity of the risks faced by agricultural firms. In this study, we developed a hybrid approach to analyse and uncover the potential risk dependence among agricultural firms. We examined thirty-two agricultural companies to study their dependence structure for risk losses. Three primary findings emerged. First, risk dependence is strong with an average value of 0.96. Second, the dependence structure is hierarchical and includes two network communities. Third, some key agricultural firms were identified in the dependence structure. These key firms are critical for the transmission of negative impacts across agricultural firms. Correspondingly, we suggest measures and strategies (such as improving the level of technological innovation and joint risk resistance capability) to reduce the impact of risk dependence.
KW - risk losses
KW - agribusiness
KW - minimum spanning trees
KW - copula
KW - dependence structure
U2 - 10.3390/su10020533
DO - 10.3390/su10020533
M3 - Article
VL - 10
JO - Sustainability
T2 - Sustainability
JF - Sustainability
SN - 2071-1050
IS - 2
M1 - 533
ER -