Tax enforcement efforts and stock price crash risk: Evidence from China

Chen, Shihua; Yunxian, Yan; Jebran, Khalil

doi:10.1111/jifm.12145

Cited by 25 publications

(11 citation statements)

References 75 publications

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“…Based on the perspective of implied volatility, they found that the restatement of financial reports, earnings management and internal control defects would increase the occurrence of stock price crash risks. Other scholars have conducted research from the perspective of external supervision, including tax regulation (Kim et al, 2011;Chen et al, 2022), media reports (An et al, 2020;Hossain et al, 2022), institutional investors (Xiang et al, 2020), and investor sentiment (Fu et al, 2021).…”

Section: Hypothesismentioning

confidence: 99%

Environmental information disclosure and stock price crash risk: Evidence from China

Chen²,

Qiu³

et al. 2023

Front. Environ. Sci.

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Environmental performances have gained great prominence for firms in recent years. This paper empirically tests the relationship between environmental information disclosure and the risk of stock price crashes based on a sample of Chinese A-share listed firms from 2013–2018. The results show that environmental information disclosure has a significant negative correlation with stock price crash risk, with mechanism analysis showing that media coverage plays an intermediary role between them. Further analysis finds that: first, the inhibitory effect of environmental information disclosure on stock price crashes is more significant in companies with a lower proportion of independent directors, which reflects the supervision effect of environmental information disclosure. Second, the role of environmental information disclosure has a greater negative impact on the risk of stock price crashes in industries with low competition, indicating that environmental information disclosure is not a tool for enterprises to compete for resources. Third, the profit motivation of institutional investors restrains the negative impact of environmental information disclosure on price collapse risk. Forth, the level of government environmental governance is an important support for enterprise environmental information disclosure.

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Section: Hypothesismentioning

confidence: 99%

Environmental information disclosure and stock price crash risk: Evidence from China

Chen²,

Qiu³

et al. 2023

Front. Environ. Sci.

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“…Xu & Zou, 2019), institutional investor (F. Li & Jiang, 2022), etc. The second is the external factor, includes tax (S. Chen et al, 2022), confucianism (Jebran, Chen, Ye, & Wang, 2019), geographical factors (X. Jin et al, 2022), etc.…”

Section: Environmental Regulation and Stock Price Crash Riskmentioning

confidence: 99%

The Effect of Firm-Specific Environmental Punishment on Stock Price Crash Risk: Evidence From China

Li,

Shen,

Wen

2023

Sage Open

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Even though previous studies have investigated the effect of environmental regulation policy on stock price crash risk, little is known about how the firm-specific environmental punishment would impact stock price crash risks. By applying difference-in-difference method with manually collected firm-specific environmental punishment data for the listed firms in China, our study finds that the implemented environmental punishment leads to larger stock price crash risk accumulation of the punished firms. This effect can be mitigated by better information disclosure behavior, higher media reputation, healthy fundamentals, and optimal capital structure. Our study also finds the consecutive punishment effect only exists in a long period. Our work is among the first to rigorously analyze the effect of firm-specific environmental punishment on firm’s stock price crash risk. This research provides relevant policy suggestions on the environmental punishment practice.

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“…Previous research on corporate governance mechanisms shows that board interlocking (Davis, 1991), CEO duality (Al Dah et al. , 2017; Chen et al. , 2021; Jebran et al.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Previous research on corporate governance mechanisms shows that board interlocking (Davis, 1991), CEO duality (Al Dah et al, 2017;Chen et al, 2021;Jebran et al, 2022), CEO tenure (Arikawa and Mitsusada, 2011), executive compensation plans (Azevedo et al, 2021;Heron and Lie, 2006), institutional ownership (Bhojraj et al, 2017;Davis, 1991;O. Harris and Madura, 2010) and the presence of staggered boards (Heron and Lie, 2015) are corporate governance drivers that positively influence the adoption of poison pills, whereas board size (Azevedo et al, 2021;Loh, 1994) and CEO/managerial ownership (Al Dah et al, 2017;Arikawa and Mitsusada, 2011;Lie, 2006, 2015) influence negatively.…”

Section: Literature Review 21 Poison Pillsmentioning

confidence: 99%

Stock price crash risk and the adoption of poison pills: evidence from Brazil

Azevedo

Schwarz²,

Dias³

et al. 2022

IJMF

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PurposeThe purpose of this paper is to examine the effect of stock price crash risk on the adoption of poison pills.Design/methodology/approachThe authors estimate logit and probit regressions. Their sample includes 185 Brazilian public firms for the period 2010–2018. Following previous studies, the authors use the negative skewness of firm-specific weekly returns and the down-to-up volatility of firm-specific weekly returns as measures of firm's stock price crash risk. As proxies of poison pills, the authors employ the “conventional” poison pills in their baseline models and the “eternity” poison pills, which prevent the removal of poison pills from bylaws, in additional models.FindingsThe authors find that stock price crash risk measures are not associated with poison pill adoption. However, although stock price crash risk does not lead to poison pill adoption as a complementary corporate governance mechanism that protects firms against hostile takeover attempts, further results show that managers do not draw on stock price crash risk as a pretext to entrench themselves. Additional analyses also highlight that CEO power seems to play a role in moderating the relationship between stock price crash risk and eternity poison pill adoption.Originality/valueThe authors contribute to the literature on stock price crash risk, which calls for research in international contexts to better understand the effect of stock price crash risk on country-specific idiosyncratic features. The authors discuss a controversial anti-takeover mechanism that has been debated by Brazilian policymakers.

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Tax enforcement efforts and stock price crash risk: Evidence from China

Cited by 25 publications

References 75 publications

Environmental information disclosure and stock price crash risk: Evidence from China

Environmental information disclosure and stock price crash risk: Evidence from China

The Effect of Firm-Specific Environmental Punishment on Stock Price Crash Risk: Evidence From China

Stock price crash risk and the adoption of poison pills: evidence from Brazil

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