Individualism and stock price crash risk
Zhe An (),
Zhian Chen (),
Donghui Li () and
Lu Xing ()
Additional contact information
Zhe An: Monash University
Zhian Chen: University of New South Wales
Donghui Li: Jinan University
Lu Xing: University of Glasgow
Journal of International Business Studies, 2018, vol. 49, issue 9, 1208-1236
Abstract Employing a sample of 26,473 firms across 42 countries from 1990 to 2013, we find that firms located in countries with higher individualism have higher stock price crash risk. Furthermore, individualism can be transmitted by foreign investors from overseas markets to influence local firms’ crash risk, and can exacerbate the impact of firm risk taking and earnings management on crash risk. Moreover, the positive relation between individualism and crash risk is amplified during the global financial crisis and attenuated by enhanced country-level financial information transparency and the adoption of International Financial Reporting Standards.
Keywords: cross-country study; national culture; individualism; stock price crash risk (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41267-018-0150-z Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:49:y:2018:i:9:d:10.1057_s41267-018-0150-z
Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2
Access Statistics for this article
Journal of International Business Studies is currently edited by John Cantwell
More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla ().