Corporate strategy and stock price crash risk

Zhichao Zhao, Yigang Zhang, Huimin Tang, Peng Liu, Xiaoran Wang and Xizhe Wang

Finance Research Letters, 2024, vol. 61, issue C

Abstract: Based on A-share listed companies in China from 2011 to 2021, this paper explores the relationship between corporate strategy and stock price crash risk. The study finds that aggressive strategies increase the risk of stock price crash, but this effect is relatively small in state-owned enterprises. In addition, there is a partial mediating effect between external financing needs and equity incentive intensity. Our findings are of great significance for understanding the relationship between corporate strategy and stock price crash risk.

Keywords: Stock price crash risk; Corporate strategy; Nature of property rights (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000321

DOI: 10.1016/j.frl.2024.105002

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