Journal:

Emerging Markets Review

Key Words:

Company visits Crash risk Information acquisition Bad news hoarding

Abstract:

Using a sample of Chinese listed firms, we observe that firms more visited by analysts or institutional investors exhibit lower future stock price crash risk. This effect is more pronounced for firms facing more incentives for or fewer constraints on hiding bad news. Greater mitigation of crash risk occurs if more firm-specific information is discovered during such visits and if visits are conducted by analysts instead of institutional investors. The impact of company visits is observed mostly in the first half of the subsequent year. These findings suggest that company visits mitigate crash risk by discovering and disseminating firm-specific information.

First Author:

Yang Jun

Correspondence Author:

Xiang Cheng

Co-author:

Lu Jing,Xiang Cheng*

Indexed by:

Journal paper

Discipline:

Economics

First-Level Discipline:

Applied Economics

Document Type:

J

Volume:

44

Page Number:

1-17

Translation or Not:

no

Date of Publication:

2020-07-31

Included Journals:

SSCI