Institutional investor association and stock price crash risk: Evidence from China
DOI:
https://doi.org/10.15549/jeecar.v11i3.1586Keywords:
institutional investor association; stock price crash; property right character; principal-agentAbstract
This study investigates the relationship between institutional investor association and stock price crash risk, using data from all listed non-financial sector companies in the Chinese capital market. The findings indicate a significant positive correlation between institutional investor association and stock price crash risk. Moreover, property rights and agency costs play significant moderating roles in this relationship. Specifically, the impact of institutional investors on stock price crash risk is more pronounced in non-state-owned enterprises (non-SOEs) than in state-owned enterprises (SOEs). Furthermore, this impact is more pronounced in firms with high agency costs and prominent agency problems compared to firms with low agency costs. This research contributes to financial regulators being able to identify better and prevent stock price crashes, ensuring the stability of investors' returns from their invested enterprises.
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ABOUT THE AUTHORS
Xumei Zhang, email: 276863381@qq.com (Corresponding Author)
Li Zhao is currently a lecturer at Chengdu University, China. She received a Bachelor's in Accounting from Huazhong University of Science and Technology in 2008, followed by a Master of Business Administration from Chongqing University of Technology in 2010. She is currently pursuing a Ph.D. in Digital Innovation and Financial Technology at Chiang Mai University starting in 2020. Her research interests include Quantitative Finance, General Finance, Portfolio Management, and Statistical Finance.
Dr. Nathee Naktnasukanjn is a lecturer at the International College of Digital Innovation, Chiang Mai University, Thailand. He got a D.B.A. (Doctor of Business Administration) in finance from the JDBA program joined by Thammasat University, Chulalongkorn University, and the National Institute of Development Administration(NIDA).
Asst. prof. Dr. Ahmad Yahya Dawod is currently a lecturer at the International College of Digital Innovation at Chiang Mai University, Thailand. He received his Ph.D. degree in Information Science and Technology from the National University of Malaysia in 2018 with the topic "Hand gesture recognition based on isolated and continuous sign language." He also graduated with his Master's degree in computing and informatics from the Multimedia University of Malaysia and his Bachelor's degree in computer science from the University of Mustansirya of Iraq. His research includes machine learning, pattern recognition, computer vision, robotics, and artificial intelligence. He had published 40 articles up to date with more than a hundred citations.
Prof. Dr. Xuemei Zhang has been a Full Professor at Chengdu University, China, since 2009. She completed her Ph.D. in engineering, specializing in systems engineering, at Southwest Jiaotong University in 2011. Additionally, she obtained a Master's degree in business management from the same university. With prior experience as Vice
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