Stock Price Crash Risk and the Market for Corporate Control

• Published in: British journal of management Vol. 35; no. 4; pp. 1724 - 1745
• Main Authors: Carline, Nicholas F., Gao, Yang, Kuo, Jing‐Ming
• Format: Journal Article
• Language: English
• Published: London Blackwell Publishing Ltd 01.10.2024
• Subjects: Causality; Concealment; Stimulus; Stock prices; Stockholders; Takeovers

Recent studies suggest that greater exposure to the market for corporate control matters for managers and shareholders since it affects firms’ ex‐post risk of experiencing a stock price crash. The findings though question the direction of the effect. In contrast, in this study, we are the first to e...