International Journal of Financial Studies

By employing the 2017 reform of China’s financial statement presentation as an exogenous shock, we evaluate how the change shapes the likelihood of stock price crashes. Our analysis indicates that firms affected by the reform exhibit notably higher crash risk after the new reporting format is adopted, and this finding remains consistent across multiple robustness checks. The increase in crash risk can be largely attributed to managerial incentives to manage earnings by reclassifying held-for-sale assets and other special items. Moreover, the reform exerts a stronger effect on firms that exhibit poor information transparency and receive little oversight from internal and external monitors.

Customer segmentation is essential in financial services for designing targeted interventions, managing dormant portfolios, and supporting marketing re-engagement strategies. Traditional approaches such as Recency–Frequency–Monetary (RFM) analysis offer interpretability but often lack the flexibility needed to capture heterogeneous behavioral patterns. This study presents an automated segmentation framework that integrates machine learning-based clustering with RFM-based interpretability benchmarks. KMeans and Hierarchical clustering are evaluated across multiple values of k using internal validity metrics (Silhouette Coefficient, Davies–Bouldin Index) and interpretability alignment measures (Adjusted Rand Index, Normalized Mutual Information, Homogeneity, Completeness, and V-Measure). The Hungarian algorithm is used to align machine-learned clusters with RFM segments for comparability. The framework reveals behavioral subgroups not captured by RFM alone, demonstrating that machine learning can expose hidden heterogeneity within dormant customer populations. While outcome-based financial validation is not yet feasible due to the cold-start nature of the deployment environment, the study provides a reproducible, scalable pipeline for segmentation that balances analytical rigor with business interpretability. The findings highlight how data-driven clustering can refine traditional segmentation logic, supporting more nuanced portfolio monitoring and re-engagement strategies in financial services.

This study investigates risk contagion and dependence structures between U.S. and Chinese technology-related stock markets, focusing on the electronics and semiconductor sectors. We employ DCC-GARCH models to capture time-varying correlations and copula models to analyze nonlinear and tail dependencies. To highlight extreme risk dynamics, we extend the analysis to Value-at-Risk (VaR) series derived from a GARCH(1,1)-Skewed-t model. Empirical results reveal three major findings. First, volatility clustering and negative skewness are evident across markets, with extreme downside risks concentrated during the 2015 Chinese stock market crash and the 2020 COVID-19 pandemic. Second, copula results show stronger upper-tail dependence in cross-border broad markets and more symmetric dependence within domestic Chinese markets, while U.S. sectoral linkages exhibit the highest vulnerability during downturns. Third, dynamic copula analysis indicates that downside contagion is episodic and crisis-driven, whereas rebound co-movements are structurally persistent. These findings contribute to understanding systemic vulnerability in global technology markets. They provide insights for investors, regulators, and policymakers on monitoring cross-market contagion and managing systemic risk under stress scenarios.