Information interaction among institutional investors and stock price crash risk based on multiplex networks

Jie Li, Zhong-Qiang Zhou, Yongjie Zhang and Xiong Xiong

International Review of Financial Analysis, 2023, vol. 89, issue C

Abstract: Using a large sample of A-share listed companies on the Chinese stock market, we investigate the impact of information interaction among institutional investors (IIAII) on stock price crash risk. IIAII is measured using a multiplex network constructed from data on the multiple social relations of institutional investors. We find a positive and significant relationship between IIAII and crash risk. The results of the influencing mechanism analysis show that IIAII influences crash risk through the herd effect rather than the monitoring effect. Overall, our findings elucidate the important role of institutional investors in corporate governance and promote the application of multiplex network theory to the financial field.

Keywords: Information interaction; Crash risk; Multiplex network; Institutional investor (search for similar items in EconPapers)
JEL-codes: G30 G32 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:89:y:2023:i:c:s105752192300296x

DOI: 10.1016/j.irfa.2023.102780

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