Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)

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The Driving Factors of Stock Price Crash Risk

Authors
Shuhua Zhang1, *
1Adam Smith Business School, University of Glasgow, Glasgow, G12 8QQ, UK
*Corresponding author. Email: sealing106894@gmail.com
Corresponding Author
Shuhua Zhang
Available Online 26 September 2023.
DOI
10.2991/978-94-6463-246-0_86How to use a DOI?
Keywords
investor moods; macroeconomic conditions; and economic growth
Abstract

Factors that increase the likelihood of a stock market collapse are examined in this study via a review of the empirical literature. We focus on the main drivers relating to the potential for a decline in stock prices, including market factors, variables that are unique to the company, and those that are industry- and country-wide factors. Our findings suggest that there is a multi-faceted phenomenon linked to the potential fall of stock prices. The likelihood of a stock price fall is heavily influenced by market parameters including liquidity, market capitalization, and volatility. Similarly, firm-specific factors, such as leverage, leverage ratio, and firm size, have a significant impact on stock price crash risk. Finally, macroeconomic factors, such as GDP growth, inflation rate, and exchange rate, are also found to be important factors that might cause a stock market meltdown. In conclusion, the danger of a fall in stock prices is influenced by a wide range of circumstances and is itself a complicated and multi-faceted phenomenon.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
26 September 2023
ISBN
10.2991/978-94-6463-246-0_86
ISSN
2352-5428
DOI
10.2991/978-94-6463-246-0_86How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Shuhua Zhang
PY  - 2023
DA  - 2023/09/26
TI  - The Driving Factors of Stock Price Crash Risk
BT  - Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
PB  - Atlantis Press
SP  - 718
EP  - 723
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-246-0_86
DO  - 10.2991/978-94-6463-246-0_86
ID  - Zhang2023
ER  -