Does crackdown on corruption reduce stock price crash risk? Evidence from China

Chen, Yunsen; Xie, Yulei; Hong, Yuwen; Zhang, Yanan

doi:10.1016/j.jcorpfin.2018.05.005

Cited by 144 publications

(50 citation statements)

References 54 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Wong, 2001; Harris and Bromiley, 2007). Following Yuan et al (2016) and Chen et al (2018), we divide our sample into large-cap (small-cap) firms if the size of firm i in year t is above (below) the median of all sample firms in the same industry and same year. Similarly, we construct high (low)-profitability firms if a firm's ROA is higher (lower) than the median of all sample firms in the same industry and same year.…”

Section: Conditional Analysis On Different Firm Characteristics and Ementioning

confidence: 99%

“…Following Yuan et al (2016) and Chen et al (2018), we use institutional ownership, auditor affiliation and analyst coverage to proxy a firm's external monitoring efficiency. We divide the sample into the following sub-samples: (1) high/low institutional ownership (IO) firms, according to whether the institutional ownership in the firm is above/below the median of all sample firms in the same industry and same year; (2) Big 4/non-Big 4 firms, according to whether the firm hires a Big 4 auditor) 20 ; (3) high/low analyst coverage (AC) firms, according to whether the analyst following of the firm is above/below the median of all sample firms in the same industry and same year.…”

Section: Conditional Analysis On Different Firm Characteristics and Ementioning

confidence: 99%

See 1 more Smart Citation

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

Yao

Wang

Sun

et al. 2020

Accounting & Finance

View full text Add to dashboard Cite

This study investigates the impact of top executives’ Great Chinese Famine experience on firm financial disclosure quality. We find firms led by top executives who experienced the great famine in early life are less likely to conduct fraudulent financial reporting. The famine effect is more pronounced in state‐owned enterprises (SOEs), smaller‐cap, lower‐profitability level firms and firms with weaker external monitoring. Further evidence suggests that top executives with great famine experience show greater tendency to implement secured debt structure, effective internal control and spend less on entertainment and travel costs, which in turn reduce the likelihood of fraudulent financial reporting.

show abstract

Section: Conditional Analysis On Different Firm Characteristics and Ementioning

confidence: 99%

Section: Conditional Analysis On Different Firm Characteristics and Ementioning

confidence: 99%

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

Yao

Wang

Sun

et al. 2020

Accounting & Finance

View full text Add to dashboard Cite

show abstract

“…Local officials play a pivotal role in the complex network of relations between local governments and polluting companies, by protecting local polluting companies. The politically sensitive period following the investigation and punishment of corruption officials can act as a deterrent effect to local governments and firms, breaking their network of relations (Chen et al, 2018). As previously mentioned, the literature has two opposing views on the economic consequences of corruption (Aidt, 2009).…”

Section: Research On Corruption and The Environmentmentioning

confidence: 99%

Does policy uncertainty affect corporate environmental information disclosure: evidence from China

Pan

Chen

Zhang

2020

SAMPJ

View full text Add to dashboard Cite

Purpose The purpose of this study is to investigate whether and how policy uncertainty affect corporate environmental information disclosure. Design/methodology/approach This study conducts a difference-in-difference estimation and systematically investigates the relationship between policy uncertainty and corporate environmental information disclosure. The baseline regression results are robust to a series of robustness and endogeneity tests. Findings The authors show that firms located in cities with stronger policy uncertainty disclose less information on environmental issues. Furthermore, this negative relationship is stronger in the Midwest and in pre-industrial regions and for stated-owned firms and firms in highly polluting industries. Practical implications This study argues that policy uncertainty reduce the corporate disclosure of environmental information. Therefore, the results provide evidence on how to better emphasize the importance of green gross domestic product in the performance appraisal system for officials. Social implications This study confirms that corporate environmental disclosure is a response to public pressure. The results encourage the government and the public to increase corporate awareness of environmental protection. Originality/value This study contributes to the literature in the following ways. First, the authors provide a new perspective to study the relationship between policy uncertainty and corporate finance. Second, it contributes to the literature on corporate environmental information disclosure by linking policy uncertainty with firms’ disclosure of environmental information. Third, this study is a serious attempt to solve the problem of endogeneity between policy uncertainty and corporate environmental information disclosure.

show abstract

“…Prior studies have investigated various factors associated with crash risk. For example, accounting conservatism (Kim & Zhang, ), stock liquidity (Chang, Chen, & Zolotoy, ), China's split‐share structure reform (Sun et al., ), China's closed pyramidal managerial labour market (Chen, Kim, Li, & Liang, ), and crackdowns on corruption (Chen, Xie, You, & Zhang, ) are all negatively associated with crash risk, while younger CEOs (Andreou et al., ), overconfident CEOs (Kim et al., ), and CFO option‐based compensation (Kim et al., ) result in greater crash risk. Our findings uncover a new factor (i.e., BDFEs) that appears to affect stock price crash risk.…”

Section: Introductionmentioning

confidence: 99%

Board directors with foreign experience and stock price crash risk: Evidence from China

Cao

Sun

Yuan

2019

Business Fin & Account

View full text Add to dashboard Cite

This study examines the impact of board directors with foreign experience (BDFEs) on stock price crash risk. We find that BDFEs help reduce crash risk. This association is robust to a series of robustness checks, including a firm fixed effects model, controlling for possibly omitted variables, and instrumental variable estimations. Moreover, we find that the negative association between BDFEs and crash risk is more pronounced for firms with more agency problems, weaker corporate governance, and less overall transparency. Our findings suggest that the characteristics of board directors matter in determining stock price crash risk. K E Y W O R D Sboard directors, foreign experience, monitoring role, stock price crash risk

show abstract

Does crackdown on corruption reduce stock price crash risk? Evidence from China

Cited by 144 publications

References 54 publications

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

Does policy uncertainty affect corporate environmental information disclosure: evidence from China

Board directors with foreign experience and stock price crash risk: Evidence from China

Contact Info

Product

Resources

About