Quantifying the correlation of media coverage and stock price crash risk: A panel study from China

Analysis on Relationship between Accurate Poverty Alleviation and Stock Price Collapse Risk from the Perspective of Information Disclosure

“…Regression results (3) and (4) show that the coefficients of APA 1 and PMI were significantly negative, so was the coefficient of the cross term. Similar results were obtained in (5) and (6). erefore, institutional environment regulates the relationship between APA and SPCR.…”

“…To control and reduce SPRC reasonably, the key is to suppress the management's information concealment or encourage them to release information in a timely manner. e relevant paths include external audit [4], media attention [5], and corporate social responsibility (CSR) disclosure [6]. Among them, CSR disclosure weakens the information superiority of the management and provides more internal information to market investors, thereby effectively reducing SPCR [7].…”

Do corporate social responsibility reduce crash risk of stock price: evidence from China

“…In addition, external supervision such as auditor-provided tax services (Habib and Hasan, 2016), analyst coverage (Xu et al , 2013) and Securities Exchange Commission oversight (Kubick and Lockhart, 2016) can reduce crash risk. Furthermore, informal institutions such as media coverage (Aman, 2013; Zhu et al , 2017; Zhao, 2020), social trust (Li et al , 2017) and religiosity (Callen and Fang, 2015b) impact crash risk.…”

“…The agency problem under information asymmetry is an important cause of stock price crash risk (Chen et al , 2001; Jin and Myers, 2006). From the perspectives of alleviating the agency problem and improving corporate transparency, prior literature has already done much research studies on the determinants of stock price crash risk, such as managers’ power (Chang et al , 2020), board diversity (Jebran et al , 2020), internal control quality (Kim et al , 2019), financial reporting quality (Hutton et al , 2009; Kim and Zhang, 2014), analyst coverage (Xu et al , 2013), media coverage (Aman, 2013; Zhu et al , 2017; Zhao, 2020). In addition, investors’ reaction to the market is another significant determinant affecting crash risk.…”

“…First, as an emerging market, China’s stock market dominated by retail investors is more prone to crash than those of developed countries such as the USA and Europe (Jin et al , 2019). Second, the immature Chinese capital market is susceptible to non-stock information, such as media reports (Aman, 2013; Zhu et al , 2017; Zhao, 2020), social trust (Li et al , 2017) and investors’ irrational behaviors (Habib et al , 2018). Enterprises undertaking CSR can quickly trigger market reaction and result in certain economic consequences.…”