Accounting-based downside risk and stock price crash risk: Evidence from China

Wei Huang, Yan Luo, Chenyang Zhang

Research output: Journal PublicationArticlepeer-review

2 Citations (Scopus)

Abstract

This paper shows that earnings downside risk as well as its component accruals downside risk can negatively predict future stock price crash risk. This negative relation is especially evident among firms with stronger corporate governance. However, operating cashflow downside risk component of earnings downside risk lacks similar predictability.

Original languageEnglish
Article number102152
JournalFinance Research Letters
Volume45
Early online date25 May 2021
DOIs
Publication statusPublished Online - 25 May 2021

Keywords

  • Accounting-based downside risk
  • Bad-news hoarding, China
  • Stock price crash risk

ASJC Scopus subject areas

  • Finance

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