Confucianism and stock price crash risk: Evidence from China

被引：39
|
作者：
Jebran, Khalil [1 ]
Chen, Shihua [2 ]
Ye, Yan [2 ]
Wang, Chengqi [3 ]
机构：
[1] Dongbei Univ Finance & Econ, Sch Accounting, Dalian, Peoples R China
[2] Dongbei Univ Finance & Econ, Sch Business Adm, 217 Jianshan St, Dalian, Peoples R China
[3] Univ Nottingham, Nottingham Univ Business Sch, Nottingham, England
来源：
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE | 2019年 / 50卷
基金：
中国国家自然科学基金;
关键词：
Confucianism; Stock price crash risk; Analyst coverage; Institutional ownership; China; POLITICAL CONNECTIONS; EARNINGS QUALITY; BUSINESS ETHICS; LIQUIDITY; IMPACT; TRUST; FIRMS;
D O I：
10.1016/j.najef.2019.100995
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
In this study, we conjecture that Confucianism can curb the managerial bad news suppression behavior and consequently stock price crash risk. Using a unique sample of geographical-proximity-based Confucianism variables and Chinese nonfinancial firms over the period 2004-2014, we show that Confucianism is negatively associated with stock price crash risk. Further, we document that analyst coverage and institutional ownership, as formal governance mechanisms, attenuate the effect of Confucianism on stock price crash risk. The results are consistent to a battery of robustness tests and additional analyses. Overall the findings suggest that Confucianism, as an ethical system, mitigates crash risk in Chinese firms.
引用
收藏
页数：17
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