Research On Financial Network Reconstruction And Communication Dynamics From The Perspective Of Information Theory

The prevention and management of financial risks has always been a challenge faced by the market and regulators.Understanding and studying the risk diffusion model of the complex financial market and its effect on the stimulus response in the traditional market can help traditional markets and regulators to collect financial market information in a timely manner,adjust wealth distribution,formulate policy measures,and prevent and alleviate financial crises.In view of the fact that the information interaction process between the participants in the traditional market is very complex,the research goal of this paper is to combine information theory and complex network theory,establish a financial network based on financial time series,and analyze the evolution law of the system topology and the system global and local risks.Study the information flow of financial networks in different periods,analyze the impact of the new crown epidemic on the stock market in different development periods,provide ideas and solutions for the control of practical problems such as financial risk spread,and conduct financial market operations and risk spread laws.Research.In terms of theoretical analysis,this paper focuses on expounding the relevant theories of information theory and complex networks,focusing on the complexity analysis and network description of financial markets.It is proposed that transfer entropy has unique advantages in measuring the change of information flow between different industry sectors in the financial network.On this basis,the information flow network between A-share sector sectors is reconstructed through transfer entropy.Then,the research on the properties of this financial network is carried out from the aspects of the network's information flow changes,topological structure,community division and so on.Thus,the law of its macroscopic evolution is obtained,which provides a theoretical basis for risk prevention and control.At the same time,according to the new crown epidemic,27 industry sectors that were deeply affected by the epidemic were selected,and an information flow network was constructed.Using the k-core decomposition algorithm to study the internal structure of the network,analyze the impact of the new crown epidemic on each industry sector in the network,and explain the reasons for its value changes at various stages of the epidemic.In the empirical research part,this paper takes the time series of index returns of various industries in China's securities market as the object,reconstructs the relevant complex network,compares the calculation results with the actual situation of the securities market,and obtains the topological structure nature and internal operation mechanism of the financial network.The conclusions are consistent with the actual observations,and the internal risk transfer situation in the financial market is interpreted.The research points out that the time system constructed in this paper can simulate most of the characteristics of the actual financial market time series more accurately,and can understand the internal operating mechanism of the financial system.The innovation of this paper is to use the transfer entropy to reconstruct the system.In the analysis of the transfer entropy,the minimum directed weighted network in the dynamic range is generated by the threshold method,and the internal law and operation mechanism of the network are analyzed.Apply information flow dynamics to the study of complex networks in financial systems.