Institutional investors’ information seeking and stock price crash risk: nonlinear relationship based on management’s opportunistic behaviour

2020 ◽  
Vol 60 (5) ◽  
pp. 4621-4649
Author(s):  
Jiangyuan Wang ◽  
Guangqiang Liu ◽  
Qisong Xiong
Keyword(s):  
Institutional Investors ◽  
Information Seeking ◽  
Stock Price ◽  
Crash Risk ◽  
Nonlinear Relationship ◽  
Opportunistic Behaviour

Institutional Investors’ Monitoring and Stock Price Crash Risk: Evidence from Politically Connected Firms

2018 ◽  
Vol 21 (04) ◽  
pp. 1850028 ◽  
Author(s):  
Chwee Ming Tee ◽  
Angelina Seow Voon Yee ◽  
Aik Lee Chong
Keyword(s):  
Institutional Investors ◽  
Stock Price ◽  
Positive Association ◽  
Institutional Ownership ◽  
Political Connections ◽  
Crash Risk ◽  
Different Types

Motivated by recent studies on political connections and stock price crash risk, this study investigates whether there is an association between politically connected (POLCON) firms and stock price crash risk. Further, we examine whether institutional investors’ ownership can moderate this association. Using a dataset of Malaysian firms for the period 2002–2012, we show that POLCON firms are associated with higher risk of stock price crashes. However, the positive association between POLCON and stock crashes is attenuated by higher institutional ownership, implying effective monitoring. Finally, we find that only local institutional investors can significantly mitigate the positive association between POLCON firms and stock price crash risk. This suggests that different types of institutional investors can produce different monitoring outcomes in POLCON firms.

Investor Structure and Stock Price Crash Risk in a Continuous Double Auction Market: An Agent-Based Perspective

2019 ◽  
Vol 18 (02) ◽  
pp. 695-715 ◽  
Author(s):  
Ruwei Zhao ◽  
Xiong Xiong ◽  
Dehua Shen ◽  
Wei Zhang
Keyword(s):  
Confidence Interval ◽  
Institutional Investors ◽  
Stock Price ◽  
Market Model ◽  
Crash Risk ◽  
Double Auction ◽  
Agent Based ◽  
Auction Market ◽  
Improved Stability ◽  
Continuous Double Auction

Multiple studies presume the institutional investors to be informed investors. However, some reports argue that this view is still under debate. In this paper, to avoid the informed investors proxy bias caused by the institutional investors, we construct an agent-based continuous double auction stock market model with both informed and uninformed investors and examine whether stock price crash risk can be affected by the change of investor structure. In particular, we employ four types of investor structures by gradually increasing percentage adjustments of informed investors from 20%, 40%, 60% to 80% within the market. We find that stock clear price and return show significant improved stability coming with the rising weight of informed investors. Beyond that, we recognize the situation that stock clear price falls below 95% confidence interval as crash event and count the number of the stock price crash events within each simulation of each different investor structure. We find that consistent with growing stability of stock clear price and return, stock price crash event number drops dramatically following the higher proportion of informed investors. These findings confirm our hypothesis that the involvement of informed investors contributes to the market stability.

Heterogeneous Institutional Investors, Short Selling and Stock Price Crash Risk: Evidence from China

2019 ◽  
Vol 56 (12) ◽  
pp. 2812-2825 ◽  
Author(s):  
Fenghua Wen ◽  
Longhao Xu ◽  
Bin Chen ◽  
Xiaohua Xia ◽  
Jinyi Li
Keyword(s):  
Institutional Investors ◽  
Stock Price ◽  
Short Selling ◽  
Crash Risk

Family Firms and Stock Price Crash Risk

2019 ◽  
Vol 10 (4) ◽  
pp. 77-86
Author(s):  
Hae-Young Ryu ◽  
Soo-Joon Chae
Keyword(s):  
Stock Price ◽  
Family Firms ◽  
Crash Risk
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