We find that stock liquidity increases stock price crash risk. To identify the causal effect, we use the decimalization of stock trading as an exogenous shock to liquidity. This effect is increasing in a firm’s ownership by transient investors and nonblockholders. We survey the burgeoning literature on the determinants of future stock price crash risk in the US, as well as in countries outside the US. Stock price c rash risk, a manifestation of extrem e The dependent variables are stock price crash risk that firm i incurs in year t + 1. The main variable of interest is EXPLORE or EXPLOIT in year t. Control is a vector of firm attributes that could affect a firm's stock price crash risk as discussed in Section 3.2.3.

We survey the burgeoning literature on the determinants and consequences of firm‐specific future stock price crash risk. We synthesise a vast body of literature on the determinants of crash risk, identify weaknesses, and offer future research opportunities. Stock price crash risk, a manifestation of extreme negative values in the distribution of firm-specific returns, has attracted considerable research interests. According to Jin and Myers (2006), when cash flow is lower than investors expect, managers hide the bad news in an effort to protect their jobs. large stock price declines. We examine the relation between stock liquidity and stock price crash risk. Stock liquidity is generally defined as the ability to trade a significant quantity of a company’s stock at a low cost in a short time (Holden, Jacobsen, and Subrah-manyam (2014)). Prior research has offered differing views on the impact This study investigates whether corporate social responsibility (CSR) mitigates or contributes to stock price crash risk. Crash risk, defined as the conditional skewness of return distribution, captures asymmetry in risk and is important for investment decisions and risk management. We find that stock liquidity increases stock price crash risk. To identify the causal effect, we use the decimalization of stock trading as an exogenous shock to liquidity. This effect is increasing in a firm’s ownership by transient investors and nonblockholders.

This study investigates whether corporate social responsibility (CSR) mitigates or contributes to stock price crash risk. Crash risk, defined as the conditional skewness of return distribution, captures asymmetry in risk and is important for investment decisions and risk management.

Stock market crashes are not uncommon in the marketplace and the risk of a There are a huge range of factors that can cause a firm's stock price to crash. Recent academic studies argue that bad news hoarding leads to stock price crash risk. These studies maintain that managers with- hold bad news from investors  22 Feb 2012 This study examines whether religiosity at the county level is associated with future stock price crash risk. We find robust evidence that firms  19 Sep 2016 In this study, I investigate the impact of analyst coverage changes on firms' subsequent firm-specific crash risk. Using a sample of 24,228  22 Aug 2017 The risk of a stock market crash is highest over the next 10 weeks if historical price patterns repeat, according to Investormint. The sobering 

The May 6, 2010 flash crash, also known as the crash of 2:45, the 2010 flash crash or simply The prices of stocks, stock index futures, options and exchange -traded funds (ETFs) were volatile, thus have been used by market participants to manage their trading and risk, their usage was also clearly a contributing factor ".

The research in the field of crash risk argues that a stock price crash occurs when investors realize that stock prices have been inflated. Jin and Myers (2006) reported that the information asymmetry between managers and shareholders, coupled with managers’ self-interest, is related to stock price crash risk. We survey the burgeoning literature on the determinants and consequences of firm‐specific future stock price crash risk. We synthesise a vast body of literature on the determinants of crash risk, identify weaknesses, and offer future research opportunities. Stock price crash risk, a manifestation of extreme negative values in the distribution of firm-specific returns, has attracted considerable research interests. According to Jin and Myers (2006), when cash flow is lower than investors expect, managers hide the bad news in an effort to protect their jobs.

large stock price declines. We examine the relation between stock liquidity and stock price crash risk. Stock liquidity is generally defined as the ability to trade a significant quantity of a company’s stock at a low cost in a short time (Holden, Jacobsen, and Subrah-manyam (2014)). Prior research has offered differing views on the impact

The research in the field of crash risk argues that a stock price crash occurs when investors realize that stock prices have been inflated. Jin and Myers (2006) reported that the information asymmetry between managers and shareholders, coupled with managers’ self-interest, is related to stock price crash risk. We survey the burgeoning literature on the determinants and consequences of firm‐specific future stock price crash risk. We synthesise a vast body of literature on the determinants of crash risk, identify weaknesses, and offer future research opportunities. Stock price crash risk, a manifestation of extreme negative values in the distribution of firm-specific returns, has attracted considerable research interests. According to Jin and Myers (2006), when cash flow is lower than investors expect, managers hide the bad news in an effort to protect their jobs. large stock price declines. We examine the relation between stock liquidity and stock price crash risk. Stock liquidity is generally defined as the ability to trade a significant quantity of a company’s stock at a low cost in a short time (Holden, Jacobsen, and Subrah-manyam (2014)). Prior research has offered differing views on the impact This study investigates whether corporate social responsibility (CSR) mitigates or contributes to stock price crash risk. Crash risk, defined as the conditional skewness of return distribution, captures asymmetry in risk and is important for investment decisions and risk management.

22 Feb 2012 This study examines whether religiosity at the county level is associated with future stock price crash risk. We find robust evidence that firms 

27 Apr 2019 After nine years of nearly uninterrupted growth in the stock markets, things are suddenly much more interesting. That's right: Stock markets can,  The research in the field of crash risk argues that a stock price crash occurs when investors realize that stock prices have been inflated. Jin and Myers (2006) reported that the information asymmetry between managers and shareholders, coupled with managers’ self-interest, is related to stock price crash risk. We survey the burgeoning literature on the determinants and consequences of firm‐specific future stock price crash risk. We synthesise a vast body of literature on the determinants of crash risk, identify weaknesses, and offer future research opportunities. Stock price crash risk, a manifestation of extreme negative values in the distribution of firm-specific returns, has attracted considerable research interests. According to Jin and Myers (2006), when cash flow is lower than investors expect, managers hide the bad news in an effort to protect their jobs. large stock price declines. We examine the relation between stock liquidity and stock price crash risk. Stock liquidity is generally defined as the ability to trade a significant quantity of a company’s stock at a low cost in a short time (Holden, Jacobsen, and Subrah-manyam (2014)). Prior research has offered differing views on the impact This study investigates whether corporate social responsibility (CSR) mitigates or contributes to stock price crash risk. Crash risk, defined as the conditional skewness of return distribution, captures asymmetry in risk and is important for investment decisions and risk management.

22 Feb 2012 This study examines whether religiosity at the county level is associated with future stock price crash risk. We find robust evidence that firms  19 Sep 2016 In this study, I investigate the impact of analyst coverage changes on firms' subsequent firm-specific crash risk. Using a sample of 24,228  22 Aug 2017 The risk of a stock market crash is highest over the next 10 weeks if historical price patterns repeat, according to Investormint. The sobering