 Oil prices and systemic financial risk: A complex network analysisKangsheng Wang, Fenghua Wen and Xu Gong Energy, 2024, vol. 293, issue C Abstract: The risk associated with the dramatic volatility of oil prices has become an important factor affecting the stability of the financial system. Through a complex network viewpoint, this study uses firm-level data to investigate systemic financial risk contagion from the oil market to the financial markets. Our study considers the risk amplification effect in financial network and provides an in-depth empirical analysis of risk contagion among financial institutions under the oil market risk shock. According to the findings of this paper, systemic financial risk increases dramatically during oil crisis events. This paper also captures important characteristics of the network, including major risk receivers and risk transmitters, and finds that banks suffer more risk losses from the oil market. Furthermore, considering the important role of the financial system in the macro economy, the systemic financial risk caused by oil market risk has long-term negative effects on economic output. Keywords: Systemic financial risk; Oil prices; Risk contagion; Complex network (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:energy:v:293:y:2024:i:c:s0360544224004444 DOI: 10.1016/j.energy.2024.130672 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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