Does crackdown on corruption reduce stock price crash risk? Evidence from China

被引：131

作者：

Chen, Yunsen ^{[1
]}

Xie, Yuan ^{[2
]}

You, Hong ^{[1
]}

Zhang, Yanan ^{[1
]}

机构：

[1] Cent Univ Finance & Econ, Sch Accountancy, 39 South Coll Rd, Beijing 100081, Peoples R China

[2] Fordham Univ, Gabelli Sch Business, 113 West 60th St, New York, NY 10023 USA

来源：

JOURNAL OF CORPORATE FINANCE | 2018年 / 51卷

基金：

中国国家自然科学基金;

关键词：

Corruption; Crackdown; Crash risk; Political risk; Bad news hoarding; POLITICAL UNCERTAINTY; JUMP-RISK; INFORMATION; RETURNS; POLICY; TRANSPARENCY; CONNECTIONS; MANAGEMENT; GROWTH; PREMIA;

D O I：

10.1016/j.jcorpfin.2018.05.005

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study examines whether crackdown on political corruption in China affects future stock price crashes. Using data from corruption-related prosecutions, we find that firms under prosecuted official jurisdictions experience a significant decrease in crash risk after the crackdown. Cross-sectional tests show that results are more pronounced for firms with higher political dependence on governments and for firms with worse information environment. Moreover, channel tests provide direct evidence that crackdown decreases crash risk by reducing political risk and bad news hoarding. Overall, our study offers novel evidence on how crackdown on corruption benefits firms.

引用

页码：125 / 141

页数：17

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