Major shareholder equity pledges and the risk of stock price crash based on external audit quality

Yu Zuo and Tao Bai

Finance Research Letters, 2024, vol. 63, issue C

Abstract: This study selects China's listed A-share firms from 2006 to 2022 as the research object to investigate the relationship between an equity pledge by a major shareholder and the risk of the company's stock price collapse. A significant negative correlation is found between equity pledges by major shareholders and the risk of share price collapse; equity pledges affect the risk of share price collapse through the firm's R&D investment.

Keywords: Equity pledge; Share price crash risk; External audit quality (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003313

DOI: 10.1016/j.frl.2024.105301

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