TARGETED POVERTY ALLEVIATION AND STOCK PRICE CRASH RISK: EVIDENCE FROM CHINA

Author:

CHEN SHOUDONG12,LI YUESHAN2

Affiliation:

1. Center for Quantitative Economics, Jilin University, Changchun 130012, P. R. China

2. School of Business, Jilin University, Changchun 130012, P. R. China

Abstract

Using manually collected samples on voluntary targeted poverty alleviation of 3418 Chinese firms for the period 2016–2019, we explore the impact of targeted poverty alleviation actions of listed companies on the stock price crash risk. Results show that listed companies participating in targeted poverty alleviation exhibited a lower risk of stock price crash risk; this conclusion is still valid after a series of robustness and endogeneity tests. This paper further explored its internal transmission routes. We found that the response of a public company to the targeted poverty alleviation policy will increase its positive coverages and plays the role of information intermediary and public supervision of media. Thus, the company’s behavior of hiding bad news is curtailed, and its future stock price crash risk is significantly reduced. For the government, China’s targeted poverty alleviation strategy is worthy of reference, while getting rid of poverty, the stock price crash risk of participating companies has also been effectively suppressed.

Funder

Ministry of Education Key Projects of Philosophy and Social Sciences Research

Publisher

World Scientific Pub Co Pte Lt

Subject

Economics and Econometrics

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3