Gambling preferences and stock price crash risk: Evidence from China

被引：114

作者：

Ji, Qiong ^{[1
]}

Quan, Xiaofeng ^{[2
]}

Yin, Hongying ^{[2
]}

Yuan, Qingbo ^{[3
]}

机构：

[1] Xian Jiaotong Liverpool Univ, Sch Intelligent Finance & Business, Suzhou, Peoples R China

[2] Soochow Univ, Dongwu Business Sch, Suzhou, Peoples R China

[3] Univ Melbourne, Dept Accounting, Melbourne, Vic, Australia

来源：

JOURNAL OF BANKING & FINANCE | 2021年 / 128卷

关键词：

Gambling preference; Stock price crash risk; Culture; INTERNAL CONTROL; CORPORATE GOVERNANCE; MARKET; FIRM; ATTITUDES; RELIGION; CONSERVATISM; MATTER;

D O I：

10.1016/j.jbankfin.2021.106158

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper investigates whether attitudes towards gambling help explain the occurrence of stock price crashes in China. By using a province's per capita welfare lottery sales as a proxy for local gambling preference, we find that firms in regions with stronger gambling preference experience greater stock price crash risk. This result is robust to a battery of sensitivity tests after addressing possible endogeneity issues by using an instrumental variable approach and propensity score matching. Furthermore, we find that the impact of local gambling attitudes on stock price crash risk is mitigated by higher quality internal monitoring and more stringent external monitoring. Lastly, we identify two channels through which gambling preferences intensify stock price crash risk: aggressive corporate strategies and speculative accounting practices. Overall, these findings suggest that local gambling preferences influence firms' stock price crash risk. (c) 2021 Elsevier B.V. All rights reserved.

引用

页数：21

共 69 条

[1] Religion, gambling attitudes and corporate innovation [J].

Adhikari, Binay Kumar ;

Agrawal, Anup .

JOURNAL OF CORPORATE FINANCE, 2016, 37 :229-248

[2] Does governance travel around the world? Evidence from institutional investors [J].

Aggarwal, Reena ;

Erel, Isil ;

Ferreira, Miguel ;

Matos, Pedro .

JOURNAL OF FINANCIAL ECONOMICS, 2011, 100 (01) :154-181

[3] Accounting conservatism and board of director characteristics: An empirical analysis [J].

Ahmed, Anwer S. ;

Duellman, Scott .

JOURNAL OF ACCOUNTING & ECONOMICS, 2007, 43 (2-3) :411-437

[4] Do independent directors cause improvements in firm transparency? [J].

Armstrong, Christopher S. ;

Core, John E. ;

Guay, Wayne R. .

JOURNAL OF FINANCIAL ECONOMICS, 2014, 113 (03) :383-403

[5] The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity [J].

Ashbaugh-Skaife, Hollis ;

Collins, Daniel W. ;

Kinney, William R., Jr. ;

LaFond, Ryan .

JOURNAL OF ACCOUNTING RESEARCH, 2009, 47 (01) :1-43

[6] Do Career Concerns Affect the Delay of Bad News Disclosure? [J].

Baginski, Stephen P. ;

Campbell, John L. ;

Hinson, Lisa A. ;

Koo, David S. .

ACCOUNTING REVIEW, 2018, 93 (02) :61-95

[7] Behavioral biases of mutual fund investors [J].

Bailey, Warren ;

Kumar, Alok ;

Ng, David .

JOURNAL OF FINANCIAL ECONOMICS, 2011, 102 (01) :1-27

[8] Market and Political/Regulatory Perspectives on the Recent Accounting Scandals [J].

Ball, Ray .

JOURNAL OF ACCOUNTING RESEARCH, 2009, 47 (02) :277-323

[9] Do Managers Disclose or Withhold Bad News? Evidence from Short Interest [J].

Bao, Dichu ;

Kim, Yongtae ;

Mian, G. Mujtaba ;

Su, Lixin .

ACCOUNTING REVIEW, 2019, 94 (03) :1-26

[10] The conservatism principle and the asymmetric timeliness of earnings [J].

Basu, S .

JOURNAL OF ACCOUNTING & ECONOMICS, 1997, 24 (01) :3-37

← 1 2 3 4 5 6 7 →