Company visits and stock price crash risk: Evidence from China

Jun Yang, Jing Lu and Cheng Xiang

Emerging Markets Review, 2020, vol. 44, issue C

Abstract: Using a sample of Chinese listed firms, we observe that firms more visited by analysts or institutional investors exhibit lower future stock price crash risk. This effect is more pronounced for firms facing more incentives for or fewer constraints on hiding bad news. Greater mitigation of crash risk occurs if more firm-specific information is discovered during such visits and if visits are conducted by analysts instead of institutional investors. The impact of company visits is observed mostly in the first half of the subsequent year. These findings suggest that company visits mitigate crash risk by discovering and disseminating firm-specific information.

Keywords: Company visits; Crash risk; Information acquisition; Bad news hoarding (search for similar items in EconPapers)
JEL-codes: G12 G14 G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014119303656
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:44:y:2020:i:c:s1566014119303656

DOI: 10.1016/j.ememar.2020.100723

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().