Individualism and stock price crash risk

• 成果类型: Article
• 署名作者: An, Zhe; Chen, Zhian; Li, Donghui; Xing, Lu
• 署名单位: Monash University; University of New South Wales Sydney; Jinan University; University of Glasgow; University of Edinburgh
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-018-0150-z
• 发表日期: 2018
• 页码: 1208-1236
• 关键词: Cross-country study; NATIONAL CULTURE; individualism; Stock price crash risk

摘要

Employing a sample of 26,473 firms across 42 countries from 1990 to 2013, we find that firms located in countries with higher individualism have higher stock price crash risk. Furthermore, individualism can be transmitted by foreign investors from overseas markets to influence local firms' crash risk, and can exacerbate the impact of firm risk taking and earnings management on crash risk. Moreover, the positive relation between individualism and crash risk is amplified during the global financial crisis and attenuated by enhanced country-level financial information transparency and the adoption of International Financial Reporting Standards.