{"title":"Investor-company interactions and stock price crash risk: Evidence from China","authors":"Lei Ruan, Liwen Yang","doi":"10.1016/j.ribaf.2025.102830","DOIUrl":null,"url":null,"abstract":"<div><div>Against the backdrop of the current complex and volatile global financial environment, enhancing financial market transparency is crucial for mitigating financial risks. With the continuous advancement of Internet technology, the interactive platforms between investors and enterprises have increasingly become essential channels for information exchange in the capital market. These platforms contribute to improving information transparency, thereby effectively preventing and controlling financial risks. This paper investigates the effect of investor-company interactions on stock price crash risk, using data from Chinese A-share listed companies from 2010 to 2022. The empirical findings demonstrate that investor-company interactions significantly reduce firms' stock price crash risk, and this conclusion remains valid after a series of robustness tests. Mechanism analysis indicates that investor-company interactions alleviate information asymmetry and reduce investor disagreement, which in turn lowers a firm's stock price crash risk. The heterogeneity analysis further reveals that the mitigating effect of investor-company interactions on stock price crash risk is more pronounced for firms with high response quality, weak internal control, dispersed ownership, low media attention, low analyst attention, and poor audit quality.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"76 ","pages":"Article 102830"},"PeriodicalIF":6.3000,"publicationDate":"2025-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0275531925000868","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Against the backdrop of the current complex and volatile global financial environment, enhancing financial market transparency is crucial for mitigating financial risks. With the continuous advancement of Internet technology, the interactive platforms between investors and enterprises have increasingly become essential channels for information exchange in the capital market. These platforms contribute to improving information transparency, thereby effectively preventing and controlling financial risks. This paper investigates the effect of investor-company interactions on stock price crash risk, using data from Chinese A-share listed companies from 2010 to 2022. The empirical findings demonstrate that investor-company interactions significantly reduce firms' stock price crash risk, and this conclusion remains valid after a series of robustness tests. Mechanism analysis indicates that investor-company interactions alleviate information asymmetry and reduce investor disagreement, which in turn lowers a firm's stock price crash risk. The heterogeneity analysis further reveals that the mitigating effect of investor-company interactions on stock price crash risk is more pronounced for firms with high response quality, weak internal control, dispersed ownership, low media attention, low analyst attention, and poor audit quality.
期刊介绍：
Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance
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