- Research Article
- 10.24818/18423264/59.2.25.09
Geopolitical Risk and the Risk Spillover on the US Technology Firms: A Quantile Perspective
- Jun 20, 2025
- ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH
- Wang Deyong + 3 more +3
This article employs the quantile vector autoregression (QVAR) Connectedness method to investigate the impact of geopolitical risk on major US technology firms under various market conditions.The findings reveal that: 1) the overall Connectedness index peaks at 63.76% during market uptrends and reaches a low of 38.61% at the median state; 2) Microsoft and Nvidia act as net risk transmitters, whereas Apple and the geopolitical risk index serve as net risk receivers; and 3) during the COVID-19 period in 2020, Connectedness significantly increased across all quantile levels, while a differentiated pattern emerged during the Russia-Ukraine war in 2022.The main contributions of this study include: firstly, it is the first to examine the asymmetric risk linkages between geopolitical risk and US technology firms; secondly, it enriches existing theories through both static and dynamic association analyses; and thirdly, it offers valuable risk management insights for investors.These results have important implications for portfolio management and policy formulation.
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