Corporate Research and Development Strategy and Stock Price Crash Risk
These authors contributed equally.
- 10.2991/assehr.k.211209.123How to use a DOI?
- Research and development; stock price crash risk; corporate governance; information disclosure; emerging market
This paper investigates the effect of research and development activity on stock price crash risk. Using a large sample of 3568 Chinese listed companies for the period 2007-2019, it is found that R&D expenditure in China is negatively associated with stock price crash risk, which suggests that the disclosure of innovation expenditures decreases the risk of dominant stock price fall. The robustness analyses suggest that the association between research and development ratio and crash risk is more pronounced in firms from emerging markets with high leverage, lower return on assets, non-Big 4 auditors, lower institutional shareholdings, and non-stated-owned enterprises. Our findings advance the understanding of research and development activity’s attributes and the benefits of its disclosure in emerging markets.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Xinzhu Zhang AU - Yu Zhang AU - Yuxin Mao PY - 2021 DA - 2021/12/15 TI - Corporate Research and Development Strategy and Stock Price Crash Risk BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 745 EP - 755 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.123 DO - 10.2991/assehr.k.211209.123 ID - Zhang2021 ER -