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

Research output: Journal Publication › Article › peer-review

10 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

Keywords

China
Debt
Stock crash risk

ASJC Scopus subject areas

Finance

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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",

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 BV",

}

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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

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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

Keywords

ASJC Scopus subject areas

Access to Document

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