Short selling constraints and politically motivated negative information suppression

Deng, Xiaohu; Jiang, Christine X.; Young, Danqing

doi:10.1016/j.jcorpfin.2021.101943

Cited by 6 publications

(2 citation statements)

References 41 publications

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“…First, the concealment of adverse news is regarded as a crucial driver of stock price crash risk, as managers may have incentives to withhold negative information, which, when accumulated and suddenly revealed to the market, may lead to stock price crashes (Deng et al . 2021). However, in practical scenarios, firms might temporarily (e.g.…”

Section: Discussionmentioning

confidence: 99%

Negative Performance Aspiration Gap and Stock Price Crashes: Based on Behavioral Theory and Agency Theory Perspective*

Wang

2024

Asia-Pac J of Fin Stud

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The paper explores how agency behavior of insiders within a company influences the risk of a stock price crash in the context of a continued expansion of the performance expectation gap. A panel data analysis of 10 727 observations of Chinese A‐share listed companies over the period 2003–2020 shows that as the negative performance aspiration gap widens, stock price crashes are more likely to occur. Furthermore, the separated role of top management and chairperson and an increase in the ownership proportion of major shareholders significantly amplifies the positive effect, whereas the increase in managerial shareholding and the equity balance diminish the main relationship.

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Section: Discussionmentioning

confidence: 99%

Negative Performance Aspiration Gap and Stock Price Crashes: Based on Behavioral Theory and Agency Theory Perspective*

Wang

2024

Asia-Pac J of Fin Stud

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“…The CNAD covers news reports about listed companies published by more than 300 newspapers in China. This dataset has been employed by a series of recent research of the role of media in China's capital market (e.g., Deng et al., 2021; Jiang et al., 2022; Ru et al., 2020; Wu & Ye, 2020).…”

Section: Data Sample and Methodologymentioning

confidence: 99%

Implicit government guarantees, media tone and bond pricing

Dong,

Xuan

2023

Business Fin & Account

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By exploiting the first public bond default event in China—the Chaori bond default in 2014—we examine how implicit government guarantees shape the role of media information in bond pricing. We find an insignificant association between preissuance media tones and bond issuances’ yield spreads before the event; however, the association becomes negative and significant after the event. The role of media tone in bond pricing is more pronounced for regions with greater information demand for default risk and for media outlets with stronger information provisions toward implicit government guarantees after the event. Mechanism analyses suggest increased bond investors’ risk awareness, rather than strengthened information provisions in media tones, as the force behind the more pronounced role of media tone in bond pricing. Finally, lower yield spreads driven by more positive media tone do not suggest bond overpricing. Our study reveals the role of media tone in bond pricing and displays the evolution of the media tone's role in bond pricing due to changing institutions.

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