# DefaultGNN: A Dual-Perspective GNN Framework for Predicting Corporate Default from Buyer-Seller Transaction Networks

arXiv: https://arxiv.org/abs/2609.25542 · HTML: https://mlsanity.com/paper/2609.25542/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 7 of its 39 references that are in the map.
- First posted on arXiv 22 Sep 2026.

## Builds on (most cited first, 7 of 7)

- [Adam: A Method for Stochastic Optimization](https://mlsanity.com/paper/1412.6980/) (2014)
- [Graph Attention Networks](https://mlsanity.com/paper/1710.10903/) (2017)
- [Axiomatic Attribution for Deep Networks](https://mlsanity.com/paper/1703.01365/) (2017)
- [Modeling Relational Data with Graph Convolutional Networks](https://mlsanity.com/paper/1703.06103/) (2017)
- [GNNExplainer: Generating Explanations for Graph Neural Networks](https://mlsanity.com/paper/1903.03894/) (2019)
- [Unsupervised Attributed Multiplex Network Embedding](https://mlsanity.com/paper/1911.06750/) (2019)
- [Company-as-Tribe: Company Financial Risk Assessment on Tribe-Style Graph with Hierarchical Graph Neural Networks](https://mlsanity.com/paper/2301.13492/) (2023)

## Abstract (arXiv)

Corporate default prediction is a core problem in financial risk management, yet traditional credit models rely heavily on financial statements that are often sparse or unavailable for many firms. Corporate transaction networks offer a complementary view of real economic activity, but how risk propagates through buyer-seller relationships remains underexplored. We conduct a large-scale empirical study using real-world electronic tax-invoice data spanning six years that links transaction histories with default events, revealing that transaction-driven risk is both role-dependent (buyer or seller) and scale-dependent. Based on these findings, we construct multiplex buyer-view and seller-view transaction networks and propose DefaultGNN, a dual-perspective graph neural network-based framework for corporate default prediction. DefaultGNN integrates both views to model how risk flows through transactional relationships, achieving strong improvements over both attribute-based and graph-based baselines, especially for firms with limited intrinsic risk signals. We further provide interpretable network-based explanations by visualizing how distressed trading partners contribute to default risk. In collaboration with a licensed credit rating agency, we validate that DefaultGNN's predictions complement existing credit scoring models, improving approval rates by 7-11%p without increasing default risk among approved firms. The source code can be found at https://github.com/jhkim611/DefaultGNN