Financial networks provide channels for contagion risks and their topological properties determine financial stability. We extend financial network reconstruction methods to the bipartite network and then compare their reproducibility for the real credit network in terms of different topological...

Using a sample of Chinese listed firms from 2003 to 2018, we show that firms with a high dependence on government subsidies exhibit large stock price crash risk. We establish causality of government subsidy dependence on crash risk using instrumental variable regression and a...

“How does a firm’s bankruptcy affect its regional environment?” is an open empirical question that has received little attention in the literature. We hypothesize that because enterprises provide funds to protect their regional environment, their default risk negatively impacts that...