Study identifies key firms contributing to systemic risk in Austrian financial network.
problem Identifying systemic risk contributors in small open economies.
method Reconstructed and analyzed the largest financial liability network of Austria, consisting of firms and banks.
result Several medium-sized firms and banks are identified as systemically important, contributing more risk than banks alone.
Researchers infer firm-level supply chain networks from sector-level data to assess systemic risk.
problem Estimating systemic risk in economic systems using firm-level data.
method Maximum-entropy algorithms applied to input-output tables and firm-level aggregate output data.
result The most realistic systemic risk content is retrieved by models incorporating disaggregated firm-specific inputs by sector.
The understanding of complex social or economic systems is an important scientific challenge. Here we present a comprehensive study of the Spanish Stock Exchange showing that most financial firms trading in that market are characterized by a resulting strategy and can be classified in groups of firms with different spe…
Study shows how firms adapt to systemic risk during crises, revealing key players and trade volume predictors.
problem Understanding systemic risk in local production networks during crises.
method Analyzing Hungarian production network dynamics from 2015 to 2022 using a null model and empirical data.
result Firms' adaptive behavior during crises leads to more resilient economies, with trade volume being a significant predictor.
In November, 2011, the Financial Stability Board, in collaboration with the International Monetary Fund, published a list of 29 "systemically important financial institutions" (SIFIs). This designation reflects a concern that the failure of any one of them could have dramatic negative consequences for the global econom…
Develops a framework to assess systemic risk in the economy using bank-firm network data.
problem Measuring systemic risk in the economy using multilayer network data.
method Unified framework combining techniques to reconstruct multilayer economy structure from bank and firm balance sheets, and dynamics of shock propagation.
result Identifies systemically important firms and banks, and assesses systemic risk determinants.
Study analyzes Colombian firms' export capabilities over 5 years.
problem Understanding specialization in Colombian firms' export products.
method Bipartite network analysis, modularity maximization, Louvain algorithm.
result Firms specialize in exporting specific product categories, forming clusters.
Model assesses how supply chain disruptions affect financial stability.
problem Systemic risk in production networks and its financial implications.
method Data-driven econo-financial stress-testing framework combining supply chain and interbank networks.
result Increase of up to 28% in financial systemic risk due to production network contagion.
Complex network theory models China's credit system to control systemic risk.
problem Insufficient understanding of China's credit network structure during financial crises.
method Constructed bipartite financial institution-firm network and analyzed its typological properties.
result Credit network structure can amplify local risks to the whole economy.
Modeling supply chain disruptions from climate hazards with adaptive firms.
problem Systemic physical climate risk in supply chains.
method Agent-based model integrating geospatial hazards and firm adaptation.
result Firms' adaptive strategies reduce disruption by 48%.
The new business paradigms originate a strong necessity to re-think the theory of the firm with the aim to get a better understanding on the organizational and functional principles of the firm, operating in the investment economies in the prosperous societies. In this connection, we make the innovative research to adv…
Study on systemic risk in European insurance sector, showing insurer connections during stress.
problem Understanding systemic risk connectedness in European insurance sector.
method Common connectedness framework applied to returns, volatility, value-at-risk, and expected shortfall.
result Insurers are a significant component of systemic risk connectedness, especially during stress episodes.
Economic growth patterns show universal scaling properties across sectors and time.
problem Whether growth dynamics of economic systems are persistent and universal remains an open question.
method Analysis of publicly-traded U.S. manufacturing firms and other sectors over different time periods.
result Scaling properties of firm growth are persistent and universal across different sectors and time periods.
Study assesses climate risks on supply chains and financial systems using detailed firm emissions data.
problem Lack of firm-level CO2 emissions data hinders assessment of transition risks from carbon pricing.
method Used detailed Hungarian firm emissions data and a simple economic ABM model to simulate carbon pricing impacts.
result 45% of companies are directly exposed to carbon pricing, leading to significant economic and financial losses.
A classification of companies into sectors of the economy is important for macroeconomic analysis and for investments into the sector-specific financial indices and exchange traded funds (ETFs). Major industrial classification systems and financial indices have historically been based on expert opinion and developed ma…
Study finds key subgraphs in Chinese guarantee networks.
problem Understanding the structure of Chinese guarantee networks.
method Analysis of 2- and 3-node subgraphs considering financial heterogeneity.
result Mutual, 2-out-stars, and triangle sub-patterns are common motifs.
Study reveals how network topology affects credit risk distribution among firms.
problem Understanding how network topology influences credit risk distribution.
method Investigation of a large dataset of Italian firms' payments and credit risk ratings.
result Significant correlations between local topological properties of firms and their risk profiles.
The distribution of firms' growth and firms' sizes is a topic under intense scrutiny. In this paper we show that a thermodynamic model based on the Maximum Entropy Principle, with dynamical prior information, can be constructed that adequately describes the dynamics and distribution of firms' growth. Our theoretical fr…
US firms improve ESG performance in response to China trade shock.
problem Impact of China trade shock on US ESG performance.
method Trade policy experiment exploiting tariff changes.
result Greater import competition from China increases US firm ESG performance.
Study finds financial constraints explain zero-leverage firms.
problem Why some firms have zero leverage despite various explanations.
method Examined three measures of financial constraints; analyzed firms' behavior before and after levering.
result Firms are financially constrained, not due to managerial entrenchment or market valuation.
Proposes QGC to distinguish between lower and upper tail connectivity in financial networks.
problem Identifying systemically important firms using financial data.
method Quantile Granger Causality (QGC) using Lasso penalized quantile regressions.
result QGC networks detect systemic risk more accurately than mean-based networks.
Model financial contagion and capital regulation under price impacts.
problem Analyzing financial contagion and capital regulation in a price-mediated system.
method Continuous-time model with risk-weight constraints, analytical bounds, and stress testing.
result Existence and uniqueness of firm behavior and asset prices under risk-weights.
This paper synthesizes and analyzes some important current and recent contributions to the theory of the firm under uncertainty. In so doing, it examines the production and hedging decisions of the competitive firm under a single source and multiple sources of uncertainty.
Measures systemic risk in interconnected financial firms.
problem Contagion effects and systemic risk in financial networks.
method Formal computation of sensitivities (Greeks) in network context.
result Proposes network Δ as a measure of systemic risk. We show how different approaches to developing marketing strategies depending on the type of environment a firm faces, where environments are distinguished in terms of their systems properties not their context. Particular emphasis is given to turbulent environments in which outcomes are not a priori predictable and ar…
Inspired by the bankruptcy of Lehman Brothers and its consequences on the global financial system, we develop a simple model in which the Lehman default event is quantified as having an almost immediate effect in worsening the credit worthiness of all financial institutions in the economic network. In our stylized desc…
We present a simple model of firm rating evolution. We consider two sources of defaults: individual dynamics of economic development and Potts-like interactions between firms. We show that such a defined model leads to phase transition, which results in collective defaults. The existence of the collective phase depends…
Investment behavior in wine industry influenced by profitability and capitalization.
problem Exploring investment dynamics in wine industry from EU largest producers.
method Firm-level data from France, Italy, and Spain (2007-2014). Difference-and system-GMM estimators used.
result Profitability positively impacts investment dynamics, while capitalization negatively impacts only in France and Spain.
We investigate the structure of global inter-firm linkages using a dataset that contains information on business partners for about 400,000 firms worldwide, including all the firms listed on the major stock exchanges. Among the firms, we examine three networks, which are based on customer-supplier, licensee-licensor, a…
The goal of this study is to determine which strategic model, either IO or RBV, allows firms to generate the highest performance on a competitive market. Contrasting with classical studies that mobilize analyses as VARCOMP, we deploy a multi-agent system simulating the behavior of firms adopting RBV or IO strategic mod…
Since governments give stimulus to firms and expect the spillover effect by fiscal policies, it is important to know the effectiveness that they can control the economy. To clarify the controllability of the economy, we investigate a firm production network observed exhaustively in Japan and what firms should be direct…
Investor and firm optimize sustainable investment and emission reduction through a dynamic game.
problem Optimal sustainable investment and emission reduction in a dynamic game setting.
method Formulated as a nonzero-sum dynamic game, solved via variational inequalities and verified in a diffusive setup.
result Nash equilibria show moving boundaries increasing with emission abatement, triggered by both investor and firm actions.
Models of spatial firm competition assume that customers are distributed in space and transportation costs are associated with their purchases of products from a small number of firms that are also placed at definite locations. It has been long known that the competition equilibrium is not guaranteed to exist if the mo…
Most accurate predictions are typically obtained by learning machines with complex feature spaces (as e.g. induced by kernels). Unfortunately, such decision rules are hardly accessible to humans and cannot easily be used to gain insights about the application domain. Therefore, one often resorts to linear models in com…
Game theory applied to financial networks, focusing on debt repayment strategies.
problem Understanding financial stability in interconnected systems.
method Modeling financial systems as networks, analyzing utility-maximizing strategies under priority-proportional payments.
result Existence and uniqueness of payment profiles are not guaranteed, even under fixed strategies.
New method quantifies systemic risk of firms in supply networks.
problem Quantifying economic systemic risk of firms from supply networks.
method Unique value-added tax dataset; novel approach for computing ESR.
result A tiny fraction of companies have high systemic risk impacting 23% of national production.
This study assesses how share capital affects financial growth of non-financial firms listed at NSE.
problem Non-financial firms listed at NSE struggle with financial growth due to declining performance and lack of investor interest.
method Descriptive and panel data analysis of 45 non-financial firms over 10 years.
result Share capital positively and significantly influences financial growth, explaining 32.73% and 11.62% of variations in earnings per share and market capitalization growth, respectively.
Study designs logging policies to minimize off-policy evaluation error.
problem Minimizing OPE error with logging policies for target policies.
method Characterizes reward-coverage tradeoff, proposes a unifying framework, derives optimal policies.
result Provides actionable guidance for firms choosing recommendation systems.
Industry-specific knowledge boosts pioneer firms' survival and growth.
problem How do regions diversify their economies?
method Measuring industry, occupation, and location-specific knowledge from work histories, using Bartik instruments.
result Industry-specific knowledge is crucial for pioneer firms' survival and growth.
Study predicts firm defaults using machine learning on Italian credit data.
problem Predicting firm defaults to inform bank lending policies.
method Used large granular credit data from Italian Central Credit Register, combined with public balance sheet data, and applied ensemble techniques and random forest models.
result Ensemble techniques and random forest provide the best results for predicting firm defaults.
Study quantifies financial contagion risks in supply chains.
problem Supply chain shocks contribute to financial losses.
method Multi-layer network framework, micro-dataset of Hungarian firms.
result Supply chain shocks amplify financial losses by 4-3x.
This study uses quantile regression to analyze U.S. firms' capital structure across different leverage levels.
problem Empirical determinants of capital structure adjustment in various macroeconomic states.
method Quantile regression method to investigate firm-specific and macroeconomic characteristics.
result Long-term and short-term debt ratios adjust at different speeds, with short-term debt increasing and long-term debt decreasing over time.
The paper explains how to predict returns based on firm characteristics.
problem Predicting returns based on firm characteristics in equilibrium models.
method Reverse-engineering equilibrium construction process with linear demands in characteristics.
result Linear expressions for returns are derived from scaled net aggregate demands and their variations.
Analyzes new economic paradigm for non-independent consumer choices.
problem Non-independent consumer choices due to firm supply and consumer information.
method Develops a new mathematical framework for economic systems.
result New paradigm for economic system description is necessary.
This study uses TDA to map corporate failure, revealing distinct regions of risk.
problem Understanding and predicting corporate default risk.
method Topological Data Analysis (TDA) applied to Altman's Z-score model.
result Firms do not cluster neatly along default predictors, suggesting complex risk landscapes.
The paper develops a method to estimate conditional survival probabilities under noisy firm value data.
problem Estimating conditional default probabilities in models with partial information about firm value.
method Recursive quantization method to approximate conditional survival probabilities.
result The recursive quantization method provides a way to approximate conditional survival probabilities under noisy data.
Investor emotions predict earnings announcements, but excitement lowers returns.
problem The impact of investor emotions on earnings announcements and their returns.
method Social media data analysis over a decade to test the relationship between investor emotions and earnings announcements.
result Excitement about earnings announcements is associated with lower announcement returns.
To elucidate allometric scaling in complex systems, we investigated the underlying scaling relationships between typical three-scale indicators for approximately 500,000 Japanese firms; namely, annual sales, number of employees, and number of business partners. First, new scaling relations including the distributions o…