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- Title
INSTITUTIONAL INVESTOR ASSOCIATION AND STOCK PRICE CRASH RISK: EVIDENCE FROM CHINA.
- Authors
Li Zhao; Nathee Naktnasukanjn; Dawod, Ahmad Yahya; Xuemei Zhang
- Abstract
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.
- Subjects
INVESTORS; INSTITUTIONAL investors; CAPITAL market; GOVERNMENT business enterprises; PROPERTY rights; AGENCY costs
- Publication
Journal of Eastern European & Central Asian Research, 2024, Vol 11, Issue 3, p493
- ISSN
2328-8272
- Publication type
Article
- DOI
10.15549/jeecar.v11i3.1586