Stock price crash risk

review of the empirical literature

Research output: Contribution to journalArticle

31 Citations (Scopus)

Abstract

We survey the burgeoning literature on the determinants and consequences of firm-specific future stock price crash risk. We synthesise a vast body of literature on the determinants of crash risk, identify weaknesses, and offer future research opportunities. We categorise the determinants into: (i) financial reporting and corporate disclosures, (ii) managerial incentives and managerial characteristics, (iii) capital market transactions, (iv) corporate governance mechanisms, and (v) informal institutional mechanisms. Despite a large body of research into the determinants of crash risk, very little research attention has been directed towards understanding the consequences of stock price crash.

Original languageEnglish
Pages (from-to)211-251
Number of pages41
JournalAccounting and Finance
Volume58
Issue numberS1
DOIs
Publication statusPublished - 1 Nov 2018
Externally publishedYes

Keywords

  • Corporate governance
  • Financial reporting
  • Non-formal institutions
  • Stock price crash risk

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