Ownership Structure and Stock Price Crash Risk: Evidence from China

This paper examines how corporate ownership concentration affects stock price crash risk in Chinese listed firms. Results show that ownership concentration is negatively associated with firm-specific crash risk and this negative relation is robust against difference-in-difference test. Further evide...

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Bibliographic Details
Published inThe journal of applied business and economics Vol. 19; no. 4; p. 65
Main Authors Gao, Wenlian, Li, Qiannan, Drougas, Anne
Format Journal Article
LanguageEnglish
Published Thunder Bay North American Business Press 01.07.2017
Subjects
Corporate governance
Economic models
Stock prices
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Summary:This paper examines how corporate ownership concentration affects stock price crash risk in Chinese listed firms. Results show that ownership concentration is negatively associated with firm-specific crash risk and this negative relation is robust against difference-in-difference test. Further evidence demonstrates that the negative relation between ownership concentration and stock price crash risk is more pronounced in privately held firms than in state-owned firms.
ISSN:1499-691X