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Digital linkage and inter-firm risk spillovers: Evidence based on the knowledge graph

Author

Listed:
  • Chi, Yuxue
  • Jing, Zhongbo
  • Zhang, Wei

Abstract

Enterprises are connected to each other through various inputs, including traditional and digital inputs, which are channels for inter-firm risk spillovers. We quantify the linkages utilizing the knowledge graph among listed firms across four dimensions: digital technology, digital application, media attention, and industry. Then, we propose four indicators to represent these links between firms. Based on a sample of Chinese listed firms from 2018 to 2022, we draw the following conclusions. First, new digital inputs not captured by the traditional linkage represent significant links between firms. Second, inter-firm risk spillovers are highly correlated with digital linkages. These results are robust to return- and ΔCoVaR-based risk spillovers. Finally, digital transformation demonstrates a significant moderating role in these associations. Technology linkages exhibit stronger correlations with return-based risk spillovers for firms in information and communications technology (ICT) and service industries.

Suggested Citation

  • Chi, Yuxue & Jing, Zhongbo & Zhang, Wei, 2026. "Digital linkage and inter-firm risk spillovers: Evidence based on the knowledge graph," Journal of Business Research, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:jbrese:v:204:y:2026:i:c:s0148296325006599
    DOI: 10.1016/j.jbusres.2025.115836
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