Simulation Model-Based Research on the Technology Support System for China’s Real Estate Financial Risk Management

Jia Guo, Lixuan Chen (), Ge Gao, Sijia Guo and Xiuting Li ()
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Jia Guo: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Lixuan Chen: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Ge Gao: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Sijia Guo: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Xiuting Li: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China

Sustainability, 2022, vol. 14, issue 20, 1-12

Abstract: With technology and finance becoming increasingly integrated, it is imperative to use fintech to improve the capability to forestall and defuse major financial risks. As an area prone to financial risks, the real estate industry deserves in-depth research on the dynamics between risks and technological capability (TC). In this paper, a simulation model was constructed with system dynamics to examine whether an improvement in TC can effectively improve risk management capability (RMC), and to explore the specific interaction between RMC and TC under six policy scenarios. We present the following findings: (1) TC has a significant supporting role in risk management; (2) increasing R&D financial input is more effective than increasing personnel input when it comes to improving TC; (3) whether it is a single input or multiple inputs of different types, increasing R&D financial input is also more effective than increasing personnel input when it comes to improving risk management; (4) overall, improvements in TC and RMC have a positive effect on social and economic development. This study not only makes clear the interconnection between TC and RMC and enriches the research content in this field, but also provide a reference for preventing and resolving major financial risks and promoting stable social and economic development.

Keywords: real estate finance; risk management; technology support; system dynamics; simulation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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