Leverage adjustment behaviors and stock price crash risk

Shiwei Su, Songbo Jia and Guangping Shi

Finance Research Letters, 2023, vol. 56, issue C

Abstract: This paper explores the relationship between the leverage adjustment behavior and the risk of stock price crash. Selecting the data of China's A-share listed companies from 2011 to 2021 as the research sample. The results show that, the leverage adjustment behavior will increase firms’ stock price crash risk; the positive relationship between the leverage adjustment level and stock price crash risk of state-owned listed companies is more significant than that of non-state-owned listed companies; further analysis finds that when the information asymmetry is higher, the leverage adjustment behavior will further increase firms’ stock price crash risk.

Keywords: Leverage adjustment behavior; Stock price crash risk; Accounting information quality (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005287

DOI: 10.1016/j.frl.2023.104156

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