Accounting-based downside risk and stock price crash risk: Evidence from China

Wei Huang, Yan Luo and Chenyang Zhang

Finance Research Letters, 2022, vol. 45, issue C

Abstract: This paper shows that earnings downside risk as well as its component accruals downside risk can negatively predict future stock price crash risk. This negative relation is especially evident among firms with stronger corporate governance. However, operating cashflow downside risk component of earnings downside risk lacks similar predictability.

Keywords: Accounting-based downside risk; Stock price crash risk; Bad-news hoarding, China (search for similar items in EconPapers)
JEL-codes: G12 G14 G32 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:45:y:2022:i:c:s1544612321002336

DOI: 10.1016/j.frl.2021.102152

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