Debt and stock price crash risk in weak information environment

Meng Wang, Miao Han and Wei Huang

Finance Research Letters, 2020, vol. 33, issue C

Abstract: We document that stock price crash risk is negatively associated with the level of debt financing by listed Chinese firms. This finding indicates that creditor monitoring reduces bad news hoarding in China's weak information environment.

Keywords: Stock crash risk; Debt; China (search for similar items in EconPapers)
JEL-codes: G1 G3 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:33:y:2020:i:c:s1544612319300376

DOI: 10.1016/j.frl.2019.05.004

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