Abstract: It is devoted to studying the transmission mechanism of risk within the group in this paper. Based on the relationship between equity and related party transaction, a directed weighting network structure is formed, and the model of risk contagion mechanism within enterprise groups is built by combining SIRS model. It is found that the state of group members in steady state is closely related to the degree distribution of nodes. The greater the degree of the impacted nodes, the wider the scope of risk contagion. Furthermore, through the discussion of scale-free network, it is found that the influence of related factors on the risk contagion within the group, and learned that the recovery rate is the key factor affecting the risk spread within the group. The research shows that the group can make its operation more stable by reducing effective infection rate and increasing the possibility of eliminating crisis.

Key words: enterprise group; risk contagion; equity relationship; related party transaction; network structures