Accounting-based downside risk and stock price crash risk: Evidence from China

Wei Huang; Yan Luo; Chenyang Zhang

doi:10.1016/j.frl.2021.102152

Accounting-based downside risk and stock price crash risk: Evidence from China

Wei Huang, Yan Luo, Chenyang Zhang

Department of Finance, Accounting and Economics

Research output: Journal Publication › Article › peer-review

8 Citations (Scopus)

Abstract

This paper shows that earnings downside risk as well as its component accruals downside risk can negatively predict future stock price crash risk. This negative relation is especially evident among firms with stronger corporate governance. However, operating cashflow downside risk component of earnings downside risk lacks similar predictability.

Original language	English
Article number	102152
Journal	Finance Research Letters
Volume	45
Early online date	25 May 2021
DOIs	https://doi.org/10.1016/j.frl.2021.102152
Publication status	Published Online - 25 May 2021

Keywords

Accounting-based downside risk
Bad-news hoarding, China
Stock price crash risk

ASJC Scopus subject areas

Finance

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10.1016/j.frl.2021.102152

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title = "Accounting-based downside risk and stock price crash risk: Evidence from China",

abstract = "This paper shows that earnings downside risk as well as its component accruals downside risk can negatively predict future stock price crash risk. This negative relation is especially evident among firms with stronger corporate governance. However, operating cashflow downside risk component of earnings downside risk lacks similar predictability.",

keywords = "Accounting-based downside risk, Bad-news hoarding, China, Stock price crash risk",

author = "Wei Huang and Yan Luo and Chenyang Zhang",

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AB - This paper shows that earnings downside risk as well as its component accruals downside risk can negatively predict future stock price crash risk. This negative relation is especially evident among firms with stronger corporate governance. However, operating cashflow downside risk component of earnings downside risk lacks similar predictability.

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Accounting-based downside risk and stock price crash risk: Evidence from China

Abstract

Keywords

ASJC Scopus subject areas

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