Monitoring or tunneling? Information interaction among large shareholders and the crash risk of the stock price

• Published in: Pacific-Basin finance journal Vol. 65; p. 101469
• Main Authors: Li, Jie, Wang, Lidan, Zhou, Zhong-Qiang, Zhang, Yongjie
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.02.2021
• Subjects: Crash risk; Information interaction; Monitoring effect; Tunneling effect; Monitoring effect; Crash risk; Tunneling effect; Information interaction

Based on A-share-listed companies on the Chinese stock market, we investigate the impact of information interaction among large shareholders (IILS) on stock price crash risk. We find that IILS is negatively correlated with crash risk. This finding is robust to include other crash risk determinants i...