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AIMS Mathematics

2024, Volume 9, Issue 4: 8920-8939. doi: 10.3934/math.2024435
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Research article

The impact of digital economy on the financial risk ripple effect: evidence from China

  • 1.
    School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China
  • 2.
    Guangzhou Institute of International Finance, Guangzhou University, Guangzhou 510006, China
  • Received: 01 February 2024 Revised: 24 February 2024 Accepted: 27 February 2024 Published: 04 March 2024

  • MSC : 62P20

  • The impact of the digital economy on the ripple effect of financial risks has attracted attention. Based on the data of flow of funds statements (financial accounts), spanning from 2011 to 2020, the fund flow analysis method was used to build a model measuring financial risk ripple effect. Second, we built a panel regression model, which studies the impact of the digital economy on the ripple effect of financial risks. In addition, we explored the heterogeneous effects of different dimensions of the digital economy on the ripple effect of financial risks. Our findings revealed several key conclusions. First, the total financial risk ripple effects between 2011 and 2020 continued to change, and the ripple effects of different types of financial risks have heterogeneity. Second, the digital economy has a negative impact on the ripple effect of financial risks. Third, the different dimensions of the digital economy have heterogeneity in the ripple effect of financial risks. Specifically, the digital economy user index and the digital economy innovation index have a negative impact on financial risk ripple effect. The digital economy platform index and the digital economy industry index have insignificant effects on financial risk ripple effect.

    Citation: Zimei Huang, Zhenghui Li. The impact of digital economy on the financial risk ripple effect: evidence from China[J]. AIMS Mathematics, 2024, 9(4): 8920-8939. doi: 10.3934/math.2024435

    Related Papers:

  • The impact of the digital economy on the ripple effect of financial risks has attracted attention. Based on the data of flow of funds statements (financial accounts), spanning from 2011 to 2020, the fund flow analysis method was used to build a model measuring financial risk ripple effect. Second, we built a panel regression model, which studies the impact of the digital economy on the ripple effect of financial risks. In addition, we explored the heterogeneous effects of different dimensions of the digital economy on the ripple effect of financial risks. Our findings revealed several key conclusions. First, the total financial risk ripple effects between 2011 and 2020 continued to change, and the ripple effects of different types of financial risks have heterogeneity. Second, the digital economy has a negative impact on the ripple effect of financial risks. Third, the different dimensions of the digital economy have heterogeneity in the ripple effect of financial risks. Specifically, the digital economy user index and the digital economy innovation index have a negative impact on financial risk ripple effect. The digital economy platform index and the digital economy industry index have insignificant effects on financial risk ripple effect.


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  • © 2024 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)
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