Changes in Accounting Conservatism after the Stock Price Crash and the Role of Foreign Investors

2017 ◽  
Vol 26 (5) ◽  
pp. 235-276
Author(s):  
Su Young Choi ◽  
Eun Jung Cho ◽  
Jaimin Goh
Keyword(s):  
Stock Price ◽  
Accounting Conservatism ◽  
Foreign Investors

Foreign Investors, External Monitoring, and Stock Price Crash Risk

2019 ◽  
Vol 35 (4) ◽  
pp. 829-853
Author(s):  
Jeong-Bon Kim ◽  
Xiaoxi Li ◽  
Yan Luo ◽  
Kemin Wang
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Reporting Quality ◽  
Crash Risk ◽  
Accrual Quality ◽  
Foreign Investors ◽  
External Monitoring ◽  
Risk Reducing ◽  
Local Firms

We investigate whether foreign investors help to reduce local firms’ future stock price crash risk through their external monitoring. We find that the entrance of foreign investors is associated with a significant reduction in local firms’ future crash risk. Further investigation reveals that foreign investors help to improve local firms’ financial reporting quality from the perspectives of accrual quality, conservatism, and annual report tone management. The evidence is consistent with our conjecture that foreign investors play an important external monitoring role, which reduces managerial bad-news hoarding and thereby lowers local firms’ future crash risk. We also find that the crash risk–reducing role of foreign investors is more pronounced when foreign investors are more familiar with the institutional background of the host country, when they have stronger incentives to monitor local firms, and when local firms have higher governance efficacy. A variety of robustness checks reveals that our results are unlikely to be driven by potential endogeneity.

scholarly journals How Does the Accounting Conservatism Affect the Stock Price Crash Risk in Pakistan: The Complementary Role of Managerial and Institutional Ownership

2021 ◽  
Vol 7 (3) ◽  
pp. 607-621
Author(s):  
Aon Waqas ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Stock Prices ◽  
Information Disclosure ◽  
Stock Price ◽  
Panel Data Analysis ◽  
Institutional Ownership ◽  
Accounting Conservatism ◽  
Crash Risk ◽  
Agency Conflicts ◽  
Complementary Role

Purpose: The conservatism of accounting and robustness of accounting information disclosure may restrain the irrational behavior of investors and help to reduce the risk of stock price crashes. This study aims to explore this in the context of developing country Pakistan. More specifically, this study investigates the effect of accounting conservatism on stock price crash risk. We also examine the complementary role of managerial and institutional ownership in strengthening this effect. Design/Methodology/Approach: This study conducts the panel data analysis of 155 nonfinancial firms listed in PSX from 2007 to 2019. This study calculates the C-Score to measure accounting conservatism. This study measures the firm’s stock price crash risk by calculating the DUVOL of weekly share prices. Findings: This study finds that there is a significant negative effect of accounting conservatism on firms’ stock price crash risk. This study also finds that managerial ownership enhances the stock price crash risk of the sample firms significantly as a moderator while there is no significant moderating influence of institutional ownership. Implications/Originality/Value: The competent authorities of Pakistan should consider agency conflicts. They should direct the firms’ management to share equal information in time regardless of whether the information is good or bad for stock prices.

The Role of HFT's in Order Flow Toxicity and Stock Price Variance

2014 ◽  
Author(s):  
serhat Yildiz ◽  
Bonnie F. Van Ness ◽  
Robert A. Van Ness
Keyword(s):  
Stock Price ◽  
Order Flow

Stock Price Jumps and Cross-Sectional Return Predictability

2013 ◽  
Vol 48 (5) ◽  
pp. 1519-1544 ◽  
Author(s):  
George J. Jiang ◽  
Tong Yao
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Return ◽  
Return Predictability ◽  
Value Premium ◽  
The Other ◽  
Stock Return Predictability ◽  
Cross Sectional ◽  
Return Dynamics

AbstractWe identify large discontinuous changes, known as jumps, in daily stock prices and explore the role of jumps in cross-sectional stock return predictability. Our results show that small and illiquid stocks have higher jump returns to the extent that cross-sectional differences in jumps fully account for the size and illiquidity effects. Based on value-weighted portfolios, jumps also account for the value premium. On the other hand, jumps are not the cause of momentum or net share issue effects. The findings of our study shed new light on stock return dynamics and present challenges to conventional explanations of stock return predictability.

Accounting Conservatism and Firm Growth Financed by External Debt

2016 ◽  
Vol 32 (2) ◽  
pp. 182-208 ◽  
Author(s):  
Tony Kang ◽  
Gerald J. Lobo ◽  
Michael C. Wolfe
Keyword(s):  
Firm Growth ◽  
Positive Relationship ◽  
External Debt ◽  
Debt Maturity ◽  
Accounting Conservatism ◽  
Debt Contracting ◽  
Conservative Accounting ◽  
Agency Risk

Previous research shows that accounting conservatism facilitates debt contracting. Extending this line of literature, we examine whether the role of accounting conservatism in accessing external debt to attain firm growth varies with its maturity. We find evidence of a positive relationship between conservatism and debt maturity. We also observe a positive relationship between conservative accounting and future growth funded by all classes of debt, but this relation is due to long-term rather than short-term debt, which is less prone to agency risk. Furthermore, the associations between conservatism and debt maturity and conservatism and growth financed by long-term debt are mostly observed for firms with fewer anti-takeover provisions in place. These findings suggest that the demand for accounting conservatism is not uniform across different debt maturity horizons.

PERANAN BRANDING PROMOTION WONDERFUL INDONESIA PADA ASEAN TOURISM FORUM (ATF) DALAM MENIGKATKAN PARIWISATA DI INDONESIA

KarismaPro ◽  
2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Taufiq Rahmat
Keyword(s):  
Research Method ◽  
Qualitative Method ◽  
Regional Cooperation ◽  
Foreign Investors ◽  
Tourism Marketing ◽  
Tourist Destinations ◽  
Government Documents ◽  
International Tourist ◽  
Literature Reviews

This study aims to determine the role of the Wonderful Indonesia branding promotion at the Asean Tourism Forum (ATF) in improving tourism in Indonesia. The ASEAN Tourism Forum (ATF) is regional cooperation that seeks to promote the ASEAN region as an international tourist destination.The research method used is a qualitative method through literature reviews on official government documents, scientific articles, and news.The results show that the ASEAN Tourism Forum (ATF) is a means or media for Indonesia to attract foreign investors to invest or invest in cooperation in developing tourism in Indonesia, as well as the Wonderful Indonesia branding promotion media to attract foreign tourists to tourist destinations in Indonesia. Indonesia. The Indonesian government takes advantage of ATF activities, namely the ASEAN Tourism Marketing Strategic (ATMS), TRAVEX, and the ATF award for the best destinations in ASEAN to boost the prestige of Indonesian tourism.AbstractThis study aims to determine the role of the Wonderful Indonesia branding promotion at the Asean Tourism Forum (ATF) in improving tourism in Indonesia. The ASEAN Tourism Forum (ATF) is regional cooperation that seeks to promote the ASEAN region as an international tourist destination.The research method used is a qualitative method through literature reviews on official government documents, scientific articles, and news.The results show that the ASEAN Tourism Forum (ATF) is a means or media for Indonesia to attract foreign investors to invest or invest in cooperation in developing tourism in Indonesia, as well as the Wonderful Indonesia branding promotion media to attract foreign tourists to tourist destinations in Indonesia. Indonesia. The Indonesian government takes advantage of ATF activities, namely the ASEAN Tourism Marketing Strategic (ATMS), TRAVEX, and the ATF award for the best destinations in ASEAN to boost the prestige of Indonesian tourism.Keywords : Branding Promotion, ASEAN Tourism Forum (ATF), Wonderful Indonesia

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