Doctor Ao Li, a researcher of the base, has published a paper titled “Supply network structure and firm tail risk” in Research in International Business and Finance.

Abstract:This paper examines how supply network structure affects financial stability, specifically for systemic tail risks in capital markets. We construct supply networks using data from the top five clients and suppliers disclosed in the annual reports of Chinese A-share listed companies from 2009 to 2022, and measures node-level supply network structure. Our findings indicate that improved supply network structure reduces firms’ systemic tail risks, primarily through information efficiency and risk diversification mechanisms. The effect is more pronounced with heightened analyst and media attention, superior corporate disclosures, closer proximity to clients or suppliers, and fewer financial constraints. This study provides insights into building resilient supply chains and mitigating financial risks.

Keywords: Supply network structure; Systematic tail risk; Financial stability; Social network analysis

Link: https://erj.ajcass.com/#/issue?id=122073&year=2025&issue=12

Author profile

Ao Li is a Lecturer at the School of Finance, Zhongnan University of Economics and Law. Li's research focuses on corporate finance, corporate governance, and enterprise innovation. Li earned a Bachelor's degree in Accounting (ACCA) from the School of Management at Huazhong University of Science and Technology, a Master's degree in Accounting and Finance from the University of Sheffield, UK, and a PhD in Finance from the School of Management at Xiamen University. Li's research papers have been published in academic journals including The World Economy, Journal of Management Science, International Review of Financial Analysis, Energy Economics, International Review of Economics and Finance, and Environmental Impact Assessment Review. Li is a Chartered Certified Accountant and an ACCA Member.