A Quasi-Natural Experiment: Product Market Competition and Stock Price Crash Risk. Issue 1 (2nd January 2022)

• Record Type: Journal Article
• Authors: Li, Jia; Luo, Zhengying
• Is Part Of: Global economic review. Volume 51:Issue 1(2022)
• Page Start: 18
• Page End: 42
• Publication Date: 2022-01-02
• Subjects: Product market competition -- competitive position -- stock price crash risk -- bad news -- information asymmetry; International economic relations -- Periodicals; Economic history -- 1990- -- Periodicals; East and West -- Periodicals; 337.05
• DOI: 10.1080/1226508X.2022.2040043
• Languages: English
• ISSNs: 1226-508X

Abstract

ABSTRACT: This paper uses the sample companies in China, taking the promulgation and implementation of the <> as an external event shock, and studies the impact of product market competition on stock price crash risk. The result shows that product market competition significantly reduces stock price crash risk, which is quite different from the conclusion under the American economic environment. Further research finds that high management agency problems and opacity of enterprise information may be the impact channel of product market competition to reduce stock price crash risk.