Corporate innovation strategy and stock price crash risk

Jia, Ning

doi:10.1016/j.jcorpfin.2018.10.006

Cited by 127 publications

(93 citation statements)

References 61 publications

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“…Table 2 provides the correlation matrix results for the main variables used in subsequent analyses. The two crash risk variables NCSKEW and DUVOL have a high correlation of 0.88, which is comparable to the values reported in previous studies (Chen et al, 2001;Callen and Fang, 2015;Kosmidou, 2017 andJia, 2018). NCSKEW is also strongly positively correlated with the CRASH_JUMP variable.…”

Section: [Insert Table One About Here]supporting

confidence: 87%

“…Habib et al, (2017) provide a literature review of crash price research. More recent research links crash risk with innovation strategy (Jia, 2018), with national culture (An et al, 2018) and product market competition (Li and Zhan, 2018).…”

Section: Crash Risk Literature Reviewmentioning

confidence: 99%

“…(2009), Callen and Fang (2015) and Jia (2018), we also take into account the negative conditional skewness (NCSKEW), which is calculated as:…”

Section: Data and Variables Measurementmentioning

confidence: 99%

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Securitization and crash risk: Evidence from large European banks

Battaglia

Buchanan

Fiordelisi

et al. 2021

Journal of International Financial Markets, Institutions and Mo

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The 2008 global financial crisis highlights the importance of securitization and crash risk. Yet there is a dearth of papers exploring the link between securitization and crash risk. We analyze 7,096 securitization deals made by large European listed banks between 2000 and 2017. Our paper provides evidence that bank risk declines in the year of the securitization and increases in the following year. We also show that this effect is driven by low-risk securitization deals. We use a dynamic panel data approach to establish a causal relationship and control the robustness of our results by using different tail risk measures (such as crash risk, value at risk, and expected shortfall). We also show that the risk reduction effect is weaker in crisis periods relative to normal times. Our findings have policy implications as regulators attempt to revive European securitization markets.

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Section: [Insert Table One About Here]supporting

confidence: 87%

Section: Crash Risk Literature Reviewmentioning

confidence: 99%

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Securitization and crash risk: Evidence from large European banks

Battaglia

Buchanan

Fiordelisi

et al. 2021

Journal of International Financial Markets, Institutions and Mo

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“…Francis, Hasan, and Li () find a positive association between firms’ deviations in real operations from industry norms and their future crash risk, and the positive association is found to be particularly stronger after the 2002 Sarbanes–Oxley Act (SOX). Local corruption (Cao, Qin, & Zhu, ), exploration‐oriented firms (Jia, ), and foreign investors (Vo, Forthcoming) are found to also positively affect stock price crash risk. Kim et al () show that overconfident CEOs are positively related to stock price crashes even in the absence of moral hazards: these types of CEOs are more likely to keep negative net present value projects for an extended period of time by failing to revise their expectation downward even with negative feedback.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Do bankers on the board reduce crash risk?

Kang

Kim

Liao

2019

Euro Fin Management

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Commercial banker-directors (CBDs) bring both financial expertise in risk management and conflicts of interest between shareholders and debtholders. The burgeoning literature on stock price crash risk generates important questions of whether CBDs reduce crash risk.Using BoardEx data from 1999 to 2009, we find supporting evidence that the firms with CBDs experience lower stock price crash risk. Moreover, the reduction of crash risk is more pronounced for highrisk firms under the monitoring of affiliated bankerdirectors. The results of this study are robust to the Heckman selection model, propensity score matching, and alternative measures of crash risk.

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“…One is using R&D input as a dependent variable to study the relationship between personal internal factors of senior management (such as age, education, gender) [5], external environmental factors of senior management (such as duration, ownership structure of enterprises, R&D funding source), Founder CEOs [2], corporate government [6], Entrepreneurial orientation [7] and R&D input. The other path is using R&D input as an independent variable and focusing on the relationship between R&D input and company performance [8,9], the relationship between R&D input and stock price crash risk [10], the relationship between R&D input and productivity growth [11], and the relationship between R&D input and energy consumption [12].…”

Section: Introductionmentioning

confidence: 99%

E-commerce Industry’s R&D, Market Operating and Performance: Based on Worldwide Listed Companies’ Empirical Analysis

Ding¹,

Chen²,

Wang³

2020

IJSDP

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Based on the characteristics of the e-commerce industry, this paper proposes the conception of operating intensity and explores the relationships between R&D intensity, operating intensity and firms’ performance. Multiple regression analysis approach is adopted based on the unbalanced panel dataset of global e-commerce listed companies in 49 countries in 2001-2015. Our findings suggest that suitable R&D intensity contributes positively to e-commerce firms’ performance, and with a lag. Operating intensity contributes an inverted U shape to e-commerce firms’ performance. We also find that interaction between R&D and operating intensity’s effects on firms’ performance is positively significant in global samples. In Group 7 sample, R&D intensity contributes positively to e-commerce firms’ performance, but BRICS sample’s is negative. Operating intensity contributes positively to firms’ performance both in Group 7 sample and BRICS sample. Marginal utility of operating intensity on firms’ performance in Group 7 sample is bigger than in BRICS. The results imply that R&D investment of e-commerce listed companies in BRIC countries has not converted to benefit, however it drags down the firms’ performance.

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Corporate innovation strategy and stock price crash risk

Cited by 127 publications

References 61 publications

Securitization and crash risk: Evidence from large European banks

Securitization and crash risk: Evidence from large European banks

Do bankers on the board reduce crash risk?

E-commerce Industry’s R&D, Market Operating and Performance: Based on Worldwide Listed Companies’ Empirical Analysis

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