%0 Journal Article %T Sparsity and Its Impact on Financial Network with Complete Core-Periphery Structure %A Elaine Yongshi Jie %A Yue Ma %J Journal of Mathematical Finance %P 244-276 %@ 2162-2442 %D 2025 %I Scientific Research Publishing %R 10.4236/jmf.2025.152011 %X This paper theoretically investigates network sparsity and its impact. We focus on a specific topology of the network, i.e., the network with core-periphery structures, which is a widely studied financial network structure. It is crucial to understand how changes in sparsity influence network impact. For example, reducing the sparsity of a banking network can offer significant advantages. Upgrading strategically a local bank branch to a regional headquarters improves the connectedness among regional branches. Similarly, reducing the overall sparsity of a banking network by strategically merging two financial networks into one can create substantial potential impacts on banking operations. We derive closed-form solutions that quantify links between sparsity and its impact on financial networks with complete core-periphery structures. We prove that reducing sparsity increases impacts on networks with complete core-periphery components through two sparsity reduction strategies. We further validate other impact measures through simulations. %K Network Sparsity %K Network Impact %K Complete Core-Periphery Structure %U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=142501