Debt and stock price crash risk in weak information environment

Meng Wang; Miao Han; Wei Huang

doi:10.1016/j.frl.2019.05.004

Debt and stock price crash risk in weak information environment

Meng Wang
, Miao Han
, Wei Huang

Department of Finance, Accounting and Economics

Research output: Journal Publication › Article › peer-review

27 Citations (Scopus)

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.

Original language	English
Article number	101186
Journal	Finance Research Letters
Volume	33
DOIs	https://doi.org/10.1016/j.frl.2019.05.004
Publication status	Published - Mar 2020

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 3 Good Health and Well-being
SDG 17 Partnerships for the Goals

Free Keywords

China
Debt
Stock crash risk

ASJC Scopus subject areas

Finance

Access to Document

10.1016/j.frl.2019.05.004

Cite this

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title = "Debt and stock price crash risk in weak information environment",

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 = "China, Debt, Stock crash risk",

author = "Meng Wang and Miao Han and Wei Huang",

note = "Publisher Copyright: {\textcopyright} 2019 Elsevier Inc.",

year = "2020",

month = mar,

doi = "10.1016/j.frl.2019.05.004",

language = "English",

volume = "33",

journal = "Finance Research Letters",

issn = "1544-6123",

publisher = "Elsevier Ltd.",

}

TY - JOUR

T1 - Debt and stock price crash risk in weak information environment

AU - Wang, Meng

AU - Han, Miao

AU - Huang, Wei

PY - 2020/3

Y1 - 2020/3

N2 - 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.

AB - 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.

KW - China

KW - Debt

KW - Stock crash risk

UR - https://www.scopus.com/pages/publications/85065421794

U2 - 10.1016/j.frl.2019.05.004

DO - 10.1016/j.frl.2019.05.004

M3 - Article

AN - SCOPUS:85065421794

SN - 1544-6123

VL - 33

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 101186

ER -

Debt and stock price crash risk in weak information environment

Abstract

UN SDGs

Free Keywords

ASJC Scopus subject areas

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