UserName:
PassWord:
Home >> Working Paper
The perception of stock Crash risk, Firm information manipulation and Dynamic adjustment of capital structure
Read        DownLoad
TitleThe perception of stock Crash risk, Firm information manipulation and Dynamic adjustment of capital structure  
AuthorXiaolong Gu, Linlin Zhang, Donghui Li  
OrganizationGuangdong university of Finance and Economics; Sun Yat-Sen University; Jinan University 
Emailpawdragon@163.com;shui_zi_liu@163.com;lidonghui@jnu.edu.cn 
Key WordsCrash Risk; Risk Perception; Real Earnings Management; Speed of Leverage Adjustment; Marketization 
AbstractThe continuous optimization of capital structure of is an important financial decision. We employ a panel of 1656 Chinese A-share listed companies from 2006 to 2014, studying how firms adjust its capital structure under different crash risk exposure. We find that SOA is slower in firms with higher crash risk exposure which is consistent with An et al., (2015). Furthermore, REM mitigates the negative correlation between crash risk exposure and SOA. And, the above findings are more announced in regions with high marketization index. Based on behavioral finance theory, our paper examines the transmission mechanism and external conditions with which firms ‘specific risk is transferred to capital suppliers, further extending the research perspective for stock price crash risk. 
Serial NumberWP1231 
Time2017-10-20 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153