scholarly journals Management equity incentives and stock price crash risk: “Golden handcuffs” or “gold watch”

PLoS ONE ◽  
2021 ◽  
Vol 16 (4) ◽  
pp. e0249900
Author(s):  
Xiaohua Zhou ◽  
Jinshi Wan ◽  
Yi Yang ◽  
Xiangyu Gan
Keyword(s):  
Peer Effects ◽  
Stock Price ◽  
Listed Companies ◽  
Mediation Effect ◽  
Crash Risk ◽  
Mediating Effects ◽  
Equity Incentives ◽  
Region 10 ◽  
The Relationship ◽  
A Share

This paper expands the previous research on management equity incentives (MEIs) and stock price crash risk by distinguishing between the "gold watch" region and the "golden handcuff" regions in MEIs. By using an estimation of the gold watch region and the golden handcuff regions based on 6,675 annual observations of China’s A-share listed companies, the stock price crash risk is found to be negatively correlated with MEIs in the golden handcuff regions (0–10%, 30%-100%) and is positively correlated with MEIs in the gold watch region (10%-30%). A further investigation of the mediating effects of peer effects on MEIs and the stock price crash risk reveals that peer effects have a partial mediation effect at the level of peer managers’ shareholding and mediate the relationship between MEIs and the stock price crash risk.

Equity Incentives and Crash Risk in China’s A-Share Market

2019 ◽  
Vol 13 (1) ◽  
Author(s):  
Jiahua Xu
Keyword(s):  
Stock Price ◽  
Positive Relationship ◽  
Market Value ◽  
Crash Risk ◽  
Equity Incentives ◽  
The Relationship ◽  
A Share

Abstract This paper examines the relationship between equity incentives and stock price crash risk in China’s A-Share Market, and finds a significantly positive relationship between equity incentives and crash risk. This result holds true when only executives’ incentives are involved, while the significance fades once non-managerial personnel’s incentives are considered, indicating a tendency for managers to manipulate the stock price when their interests are tied to the market value of the stock. This manipulation, however, can cause the stock price to suffer in subsequent years.

scholarly journals ESG Disclosures and Stock Price Crash Risk

2021 ◽  
Vol 14 (2) ◽  
pp. 70 ◽  
Author(s):  
Rio Murata ◽  
Shigeyuki Hamori
Keyword(s):  
Dynamic Model ◽  
Stock Price ◽  
The United States ◽  
Crash Risk ◽  
Firm Level ◽  
Market Participants ◽  
Major Market ◽  
Market Index ◽  
Index Components ◽  
The Relationship

In this study, we investigate the relationship between environmental, social, and governance (ESG) disclosures and stock price crash risk. A stock price crash is a dreadful event for market participants. Thus, exploring stock price crash determinants is helpful for investment decisions and risk management. In this study, we use samples of major market index components in Europe, the United States, and Japan to perform regression analyses, after controlling for other potential stock price crash determinants. We estimate static two-way fixed-effect models and dynamic GMM models. We find that coefficients of firm-level ESG disclosures are not statistically significant in the static model. ESG disclosure coefficients in the dynamic model are not statistically significant in the U.S. market sample. On the other hand, coefficients of ESG disclosure scores in the dynamic model are statistically significant and negative in the European and Japanese marker sample. Our findings suggest that ESG disclosures lower future stock price crash risk; however, the effect and predictive power of ESG disclosures differ among regions.

scholarly journals Mediating effects of empowerment on the relationship between global function and recovery among community-dwelling patients with schizophrenia: A cross-sectional study

2020 ◽  
Author(s):  
Wen I Liu ◽  
Wen Ling Hsieh ◽  
Shih Kai Lee ◽  
Kuen-Tai Lee
Keyword(s):  
Patient Empowerment ◽  
Reliability And Validity ◽  
Cross Sectional Study ◽  
Community Dwelling ◽  
Mediation Effect ◽  
Sectional Study ◽  
Mediating Effects ◽  
Cross Sectional ◽  
Global Function ◽  
The Relationship

Abstract Background: Functional degradation among community-dwelling patients with schizophrenia can negatively influence their recovery. Given the importance of patient empowerment during recovery, the current study aimed to examine the mediating effects of patient empowerment on the relationship between global function and recovery among such patients.Methods: This cross-sectional study recruited community-dwelling patients with schizophrenia from northern and central Taiwan. Questionnaires with verified reliability and validity were provided and collected on site by trained nurses. The causal steps approach proposed by Baron and Kenny and the Sobel test were utilized to verify the mediation effect.Results: A total of 373 participants completed the survey. After controlling for factors associated with recovery, empowerment was determined to exert “full mediation” over the effects of global function on patient recovery, with the mediation effect reaching 85.9% and the Sobel test indicating significant mediation.Conclusions: Although improving the global function of community-dwelling patients with schizophrenia could likely encourage recovery, the present study suggested that offering empowerment-oriented care services may be more effective than global function improvement on recovery among these patients.

Do Firms Redact Information from Material Contracts to Conceal Bad News?

2021 ◽  
Author(s):  
Dichu Bao ◽  
Yongtae Kim ◽  
Lixin (Nancy) Su
Keyword(s):  
Stock Price ◽  
Positive Association ◽  
Securities And Exchange Commission ◽  
Bad News ◽  
Crash Risk ◽  
Public Disclosure ◽  
Litigation Risk ◽  
External Monitoring ◽  
Future Performance ◽  
Equity Incentives

The Securities and Exchange Commission (SEC) allows firms to redact information from material contracts by submitting confidential treatment requests, if redacted information is not material and would cause competitive harm upon public disclosure. This study examines whether managers use confidential treatment requests to conceal bad news. We show that confidential treatment requests are positively associated with residual short interest, a proxy for managers’ private negative information. This positive association is more pronounced for firms with lower litigation risk, higher executive equity incentives, and lower external monitoring. Confidential treatment requests filed by firms with higher residual short interests are associated with higher stock price crash risk and poorer future performance. Collectively, our results suggest that managers redact information from material contracts to conceal bad news.

LOCAL INSTITUTIONAL ENVIRONMENT AND STOCK PRICE CRASH RISK: EVIDENCE FROM CHINA

2020 ◽  
pp. 1-22
Author(s):  
XIAOJIAN TANG ◽  
STEPHANIE TSUI ◽  
KUANG-TA LO
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Institutional Environment ◽  
Crash Risk ◽  
Level Data ◽  
The Relationship ◽  
Privately Owned ◽  
Province Level

Based on province-level data on China’s local institutional environment from 2008 to 2014, we explore the relationship between the local institutional environment and stock price crash risk. We find that a stronger local institutional environment curbs stock price crash risk. Furthermore, we explore the relationship between local institutional environment and stock price crash risk for state-owned versus privately owned enterprises. We find that a stronger local institutional environment is more likely to curb stock price crash risk in state-owned enterprises than in privately owned enterprises. Our results are robust to additional tests. These findings suggest that it is necessary to accelerate the progress of local marketization in China to ensure the development of the stock market and a strong economy.

scholarly journals The Information Role of Earnings Conference Call Tone: Evidence from Stock Price Crash Risk

2019 ◽  
Author(s):  
Xi Fu ◽  
Xiaoxi Wu ◽  
Zhifang Zhang
Keyword(s):  
Stock Price ◽  
Predictive Power ◽  
Crash Risk ◽  
Conference Calls ◽  
Conference Call ◽  
Public Firms ◽  
Equity Incentives ◽  
Disclosure Tone

Abstract This paper investigates whether and how the disclosure tone of earnings conference calls predicts future stock price crash risk. Using US public firms’ conference call transcripts from 2010 to 2015, we find that firms with less optimistic tone of year-end conference calls experience higher stock price crash risk in the following year. Additional analyses reveal that the predictive power of tone is more pronounced among firms with better information environment and lower managerial equity incentives, suggesting that extrinsic motivations for truthful disclosure partially explain the predictive power of conference call tone. Our results shed light on the long-term information role of conference call tone by exploring the setting of extreme future downside risk, when managers have conflicting incentives either to unethically manipulate disclosure tone to hide bad news or to engage in ethical and truthful communication.

Looking hot in selfies: Narcissistic beginnings, aggressive outcomes?

2019 ◽  
Vol 43 (6) ◽  
pp. 500-506 ◽  
Author(s):  
Jaimee Stuart ◽  
Anna Kurek
Keyword(s):  
Social Interactions ◽  
Self Esteem ◽  
Path Model ◽  
Mediation Effect ◽  
Mediating Effects ◽  
Cyber Aggression ◽  
Positive Effects ◽  
Physically Attractive ◽  
The Relationship ◽  
Self Presentations

An emerging literature suggests that females are more likely than males to take and post selfies and that such selfies tend to both conform to and legitimize the sexualization of femininity. It has been found that key predictors of selfie behaviors are narcissistic personality traits and that taking a higher number of selfies may, in turn, put young people at risk of engaging in negative social interactions online. No studies to date have investigated the mediating effects of selfies and, moreover, selfies that are taken with the intention of to appear physically attractive (i.e., sexualized selfies), on the relationship between narcissism and cyber behaviors. The following study examined selfie taking among a group of 262 adolescent girls (aged 13–16). Results of a path model found a serial mediation effect, indicating that exploitativeness was associated with increased selfie taking, which increased sexualized selfie taking and in turn increased cyber aggression and victimization. In contrast, contingent self-esteem was associated with taking sexualized selfies (with indirect positive effects on cyber behaviors). Results of this model also show that the effect of taking selfies on cyber behaviors is fully mediated by taking sexualized selfies. These findings are discussed in relation to the characteristics of the online environment and the risks of young women’s sexualized online self-presentations.

Helicopter parenting and female university students’ anxiety: does parents’ gender matter?

2020 ◽  
Vol 9 (3) ◽  
pp. 417-430
Author(s):  
Hayley Love ◽  
Ming Cui ◽  
Jeffery W. Allen ◽  
Frank D. Fincham ◽  
Ross W. May
Keyword(s):  
University Students ◽  
Undergraduate Students ◽  
Self Efficacy ◽  
Structural Equation ◽  
Anxiety Symptoms ◽  
Mediation Effect ◽  
Helicopter Parenting ◽  
Mediating Effects ◽  
The Relationship ◽  
Gender Specific

This study examined two potential mechanisms, competence and self-efficacy, that might account for the relationship between helicopter parenting and anxiety symptoms among female university students, and whether any mediating effects differed by parent gender. Structural equation modelling of data collected from 473 undergraduate students showed that both competence and self-efficacy mediated the association between paternal helicopter parenting and female university students’ anxiety symptoms. No mediation effect was found for maternal helicopter parenting. A comparison between paternal and maternal effects revealed that they differed significantly from each other. Specifically, associations between helicopter parenting and female university students’ competence and self-efficacy were much stronger for fathers than for mothers. Implications of the gender-specific findings are discussed in this article, and their importance for prevention and intervention are highlighted.

scholarly journals Investor Sentiment and Stock Price Crash Risk in the Chinese Stock Market

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Binghui Wu ◽  
Yuanman Cai ◽  
Mengjiao Zhang
Keyword(s):  
Comparative Analysis ◽  
Stock Market ◽  
Stock Price ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Crash Risk ◽  
Research Approach ◽  
Chinese Stock Market ◽  
The Impact ◽  
A Share

This paper uses the partial least squares method to construct the investor sentiment index in Chinese stock market. The Shanghai Stock Exchange 180 Index and the Shenzhen Stock Exchange 100 Index are used as samples. From the perspectives of holistic sentiment and heterogeneous sentiment, this paper studies the impact of investor sentiment on stock price crash risk. The results show that investor sentiment can significantly affect stock price crash risk in Shanghai and Shenzhen A-share markets, especially in the Shenzhen A-share market no matter from which perspective. And investor pessimism has a greater impact on stock price crash risk in the Shenzhen A-share market from the perspective of heterogeneous sentiment. Compared with the available researches, this paper makes two contributions: (i) the comparative analysis is adopted to discuss the differences between Shanghai and Shenzhen A-share markets, abandoning the research approach that takes the two markets as a whole in existing literature, and (ii) this paper not only studies the impact of investor holistic sentiment on stock price crash risk from a macro perspective, but also adds a more micro heterogeneous sentiment and conducts a comparative analysis.

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