 Connecting the stocks of major energy firms in China to identify the systemic riskLi-Yang Guo, Chao Feng and Si-Qi Yu Energy Economics, 2023, vol. 126, issue C Abstract: This study mainly identifies systemic risks among energy firm stocks. By using a financial network approach on 198 major energy firms in China, the study finds that energy firms are accompanied with systemic risk due to extensive stock return and stock risk connections. Return connection is less severe and long-lasting than risk connection, but they are all buffeted to varying degrees by economic activities, such as stock market volatility, energy policy, and public event like COVID-19. Structural analysis further finds that heterogeneity and asymmetry exist in energy firms' bidirectional ability of price and risk information processing; relatively extreme asymmetry cases can be observed from risk connection ability. Multiple centrality indicators screen out some systemically important energy firms from exchanges of both return and risk information. All these characteristics could provide implications for policy making, corporate response, and portfolio construction. Keywords: Energy firms; Systemic risk; Financial connection; Centrality indicator (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:126:y:2023:i:c:s0140988323005133 DOI: 10.1016/j.eneco.2023.107015 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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