Abstract: In the actual financing process, it is difficult for many firms to obtain all the funds necessary for their own development through the financial system. Firms often obtain gap funds through credit guarantee other than bank borrowing, firm bond or stock, thus forming a complex and close inter-firm network of guarantee circle. However, facing the instability of the market environment and the behavior preference of different firms, firms as the demander of credit guarantee may be inclined to venture capital, which increases the uncertainty of firm operation and the probability of credit default, resulting in frequent problems of guarantee circle. Therefore, in this context, an in-depth analysis of the formation and contagion of credit guarantee risk in guarantee circle will help to optimize the inter-firm relationship of credit guarantee, reduce the default risk of inter-firm credit guarantee and play a benign financing function of guarantee circle under the influence of firm behavior preference.

Key words: firm behavior preference; inter-firm credit guarantee; credit guarantee network; risk contagion