IPO over-financing and stock price crash risk: Evidence from China

被引：5
作者：
Wu, Xiang [1 ]
Zhang, Bing [1 ]
Fu, Junhui [2 ]
Liu, Yufang [2 ]
机构：
[1] Nanjing Univ, Sch Business, Dept Finance & Insurance, Nanjing 210093, Peoples R China
[2] Zhejiang Univ Finance & Econ, Sch Finance, Hangzhou 300018, Peoples R China
来源：
FINANCE RESEARCH LETTERS | 2022年 / 47卷
基金：
中国国家自然科学基金;
关键词：
Stock price crash risk; IPO over-financing; Tobin's q; Over-investment effect; FREE CASH FLOW; INVESTMENT; RETURNS;
D O I：
10.1016/j.frl.2021.102555
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper investigates the impact of IPO over-financing on stock price crash risk. Using a unique Chinese database, we find a significant positive relationship between IPO over-financing and crash risk. This finding holds after a series of robustness checks including the inclusion of some omitted variables, longer forecasting windows, and other measure of crash risk. Further analyses show that the impact of IPO over-financing on crash risk is more pronounced in low Tobin's q firms. Moreover, we find that IPO over-financing affects crash risk through over-investment effect.
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页数：9
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