Digital technology development and systemic financial risks: Evidence from 22 countries
This study evaluates how digital technology development affects systemic financial risks in various countries. We employ cross-country sample data from over 5000 financial institutions in 22 countries from 2013 to 2021. The results reveal that the rapid growth of digital technology increases the sys...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-12-01
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| Series: | Borsa Istanbul Review |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845024001200 |
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| _version_ | 1832591751437615104 |
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| author | Xu Haoran Miao Wenlong Zhang Siyu |
| author_facet | Xu Haoran Miao Wenlong Zhang Siyu |
| author_sort | Xu Haoran |
| collection | DOAJ |
| description | This study evaluates how digital technology development affects systemic financial risks in various countries. We employ cross-country sample data from over 5000 financial institutions in 22 countries from 2013 to 2021. The results reveal that the rapid growth of digital technology increases the systemic financial risks of various countries; this increase is related to disparities in the digital technology development stages and financial system structures. Furthermore, this study investigates the emotional contagion, complex financial linkage, and valuation inhibition effects on digital technology development's impact on systemic financial risks. Heterogeneity analysis shows that in countries with high levels of digital technology development and market-oriented financial systems, digital technology's effect on intensifying systemic financial risks is more significant. |
| format | Article |
| id | doaj-art-1fde2328923942f98248e555e7d9e3ca |
| institution | Kabale University |
| issn | 2214-8450 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj-art-1fde2328923942f98248e555e7d9e3ca2025-01-22T05:42:28ZengElsevierBorsa Istanbul Review2214-84502024-12-012419Digital technology development and systemic financial risks: Evidence from 22 countriesXu Haoran0Miao Wenlong1Zhang Siyu2International Business School, Shaanxi Normal University, 710119, Chang'an District, Xi'an, ChinaCorresponding author.; International Business School, Shaanxi Normal University, 710119, Chang'an District, Xi'an, ChinaInternational Business School, Shaanxi Normal University, 710119, Chang'an District, Xi'an, ChinaThis study evaluates how digital technology development affects systemic financial risks in various countries. We employ cross-country sample data from over 5000 financial institutions in 22 countries from 2013 to 2021. The results reveal that the rapid growth of digital technology increases the systemic financial risks of various countries; this increase is related to disparities in the digital technology development stages and financial system structures. Furthermore, this study investigates the emotional contagion, complex financial linkage, and valuation inhibition effects on digital technology development's impact on systemic financial risks. Heterogeneity analysis shows that in countries with high levels of digital technology development and market-oriented financial systems, digital technology's effect on intensifying systemic financial risks is more significant.http://www.sciencedirect.com/science/article/pii/S2214845024001200Digital technologySystemic financial riskMarket sentimentInformation asymmetry |
| spellingShingle | Xu Haoran Miao Wenlong Zhang Siyu Digital technology development and systemic financial risks: Evidence from 22 countries Borsa Istanbul Review Digital technology Systemic financial risk Market sentiment Information asymmetry |
| title | Digital technology development and systemic financial risks: Evidence from 22 countries |
| title_full | Digital technology development and systemic financial risks: Evidence from 22 countries |
| title_fullStr | Digital technology development and systemic financial risks: Evidence from 22 countries |
| title_full_unstemmed | Digital technology development and systemic financial risks: Evidence from 22 countries |
| title_short | Digital technology development and systemic financial risks: Evidence from 22 countries |
| title_sort | digital technology development and systemic financial risks evidence from 22 countries |
| topic | Digital technology Systemic financial risk Market sentiment Information asymmetry |
| url | http://www.sciencedirect.com/science/article/pii/S2214845024001200 |
| work_keys_str_mv | AT xuhaoran digitaltechnologydevelopmentandsystemicfinancialrisksevidencefrom22countries AT miaowenlong digitaltechnologydevelopmentandsystemicfinancialrisksevidencefrom22countries AT zhangsiyu digitaltechnologydevelopmentandsystemicfinancialrisksevidencefrom22countries |