Global geopolitical risk and financial stability: Evidence from China

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-02-01 DOI:10.1016/j.frl.2024.106501

Sha Zhu , Yuqin Xia , Qiuxuan Li , Yunjia Chen

引用次数: 0

Abstract

This study provides evidence that global geopolitical risk (GPR) significantly impacts financial stability. By constructing five sub-market stress indices (banking, securities, foreign exchange, housing, and commodity), we assess sub-market stress spillovers and financial stress total connectedness for China using an improved Diebold and Yilmaz method. Furthermore, we innovatively investigate the relationship between GPR and financial stress total connectedness. The findings indicate that GPR positively affects financial stress total connectedness. More notably, GPR can predict financial stress total connectedness at least leading four months. The global geopolitical threats risk and unexpected geopolitical risk are positively related with financial stress total connectedness.

查看原文本刊更多论文

求助全文

约1分钟内获得全文求助全文

来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance