Analyst coverage, optimism, and stock price crash risk: Evidence from China

Nianhang Xu, Xuanyu Jiang, Kam C. Chan and Zhihong Yi

Pacific-Basin Finance Journal, 2013, vol. 25, issue C, 217-239

Abstract: We examine the relations among analyst coverage, analyst optimism, and firm-specific stock price crash risk. Using a unique Chinese database, we find that an increase in a firm's analyst coverage leads to an increase in stock price crash risk and this positive relation is more pronounced when analysts are more optimistic analysts and are affiliated with investment banks and brokerage firms with mutual funds relation. We also find some weak evidence to suggest that analyst optimism on crash risk is less pronounced when analysts have high personal reputations or are affiliated with reputable brokerage firms.

Keywords: Analyst optimism; Crash risk; Conflict of interest; Reputation (search for similar items in EconPapers)
JEL-codes: G00 G24 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (89)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X13000541
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:pacfin:v:25:y:2013:i:c:p:217-239

DOI: 10.1016/j.pacfin.2013.09.001

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().