We study a new model to study the effect of contract externalities that arise through shock transmission. We model a financial network where good firms enjoy direct and indirect benefits from linking with one another. Bad risks benefit from having a connection with a good firm, but they are a...

The October 2015 Global Financial Stability Report finds that, despite an improvement in financial stability in advanced economies, risks continue to rotate toward emerging markets. The global financial outlook is clouded by a triad of policy challenges: emerging market vulnerabilities, legacy...

This study explores the role of fnancial support in the digital transformation of Chinese A-share-listed companies from 2001 to 2020. By utilizing the moderating efect model and threshold regression model, this study fnds the following results: (1) Digital transformation positively impacts...