Global convergence of financial reporting and resilience to fiscal spillover shocks
构建国家间多重网络，发现财务报告全球趋同使就业和增加值对溢出冲击的敏感度分别降低16.12%和23.30%，通过网络多样化增强经济韧性。
• Shocks originating from one country can propagate across borders, causing sizable macroeconomic fluctuations. • This study constructs a novel country-to-country multiplex network to track shock propagation across countries. • Global convergence of financial reporting enhances countries’ resilience to cross-border spillover shocks, bolstering economic stability. • Financial reporting convergence reduces the sensitivity of employment and value-added to spillover shocks by 16.12% and 23.30%, respectively. • Resilience stems from network diversification, enabling countries to strategically allocate resources across broader foreign partnerships. In today’s interconnected global economy, economic shocks in one country often propagate across borders, causing significant fluctuations worldwide. Constructing a novel country-to-country multiplex network framework, this study demonstrates that financial reporting convergence enhances a country’s resilience to spillover shocks, resulting in a 16.12% and 23.30% decrease in the sensitivity of employment and value-added to shock-induced fluctuations. This resilience effect arises from network diversification, enabling countries to allocate resources more strategically across a broader range of foreign partners. Our findings are robust to multiple identification strategies. Overall, our study underscores the importance of global financial reporting convergence in reducing network risk and strengthening countries’ economic stability in the face of external shocks.