Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 7th International Conference on Economic Management and Green Development
Series Vol. 29 , 10 November 2023
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The Influence of the Network on the Financial Market: Taking Financial Intermediaries and Internet Finance as Examples
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Abstract
The article investigates the impact of financial intermediaries and internet finance on financial markets. By comparing the existing research data and materials, this paper analyzes the advantages of financial intermediaries in dealing with information asymmetry, controlling credit risk, capital allocation, and conversion. The research shows that both the advantages and disadvantages of financial intermediaries affect financial markets to some extent. The author also found that with the development of search engines and social networks, the rise of Internet finance has a significant status in promoting the efficiency of resource allocation. The results are supported by data generated from previous studies and are consistent across both internal and external conditions. From both positive and negative aspects, the influence of social networks and informatization on financial markets can also provide a positive reform effect on networks and financial intermediaries and put forward some further ideas. Furthermore, based on the analysis, the author also puts forward some measures to utilize financial intermediaries and internet finance.
Keywords
financial intermediaries, internet finance, financial markets, information asymmetry, social networks
References
1. Franklin Allen and Ansgar Walther, “Architecture and Stability of the Financial System” , November 8-9, 2018.
2. Asako Chiba, “Financial Contagion in Core–Periphery Networks and Real Economy” , Published online: 19 August 2019, © Springer Science+Business Media, LLC, part of Springer Nature 2019.
3. Shuping Li, Xinghua Liu and Chongren Wang , “The Influence of Internet Finance on the Sustainable Development of the Financial Ecosystem in China”, 18 March 2020.
4. Jackson, “The human network”, Chapter 4, 2019..
5. Choi, Gallo and Wallace, “Financial contagion in networks: A market experiment”, Working paper, 2017.
6. Huang, Y. Shen, J. Wang, and F. Guo, “Can Internet Revolutionize Finance in China?” In China’s New Sources of Economic Growth: Reform, Resources and Climate Change, edited by Garnaut et al. Canberra: ANU Press, 2016.
7. Shuping Li, Xinghua Liu and Chongren Wang, “The Influence of Internet Finance on the Sustainable Development of the Financial Ecosystem in China”, 18 March 2020.
8. John Nkwoma Inekwe, Yi Jin, Maria Rebecca Valenzuela, “Global financial network and liquidity risk”, Australian Journal of Management, 2018.
9. The Influence Shuping Li, Xinghua Liu and Chongren Wang, “The Influence of Internet Finance on the Sustainable Development of the Financial Ecosystem in China”, 18 March 2020.
10. Haldane, A.G, “Rethinking the financial network”, BoE, 2009.
11. Asako Chiba, “Financial Contagion in Core–Periphery Networks and Real Economy”, 19 August 2019.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 7th International Conference on Economic Management and Green Development
- ISBN (Print)
- 978-1-83558-079-0
- ISBN (Online)
- 978-1-83558-080-6
- Published Date
- 10 November 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/29/20231367
- Copyright
- 10 November 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited