Article
Business, Finance
Keping Wu, Yumei Fu, Dongmin Kong
Summary: This study finds that enterprise digital transformation can significantly reduce stock price crash risk, with variations observed among different types of enterprises and regions.
FINANCE RESEARCH LETTERS
(2022)
Article
Business, Finance
Zhiwu Chen, Yaowen Shan, Yuqiang Cao, Meiting Lu, Zhuoan Feng
Summary: This study investigates the impact of broadband infrastructure development on local firms' stock price crash risk, and finds that the Broadband China strategic implementation plan (BCS) can reduce information asymmetry, mitigating stock price crash risk. The impact is more pronounced in highly monopolized industries and regions with lower marketization levels, as well as among non-state-owned enterprises and firms with financial and academic expertise.
FINANCE RESEARCH LETTERS
(2023)
Article
Business, Finance
Ramzi Benkraiem, Hamdi Ben-Nasr, Salem Nechi, Hatem Rjiba
Summary: This paper examines the impact of stock price crash risk on capital structure dynamics using a sample of firms located in the GCC region. The results show that a higher exposure to stock price crash risk is associated with a lower speed of leverage adjustments toward target. We also find that this relation is more pronounced for over-levered firms compared to their under-levered peers. Our results withstand several sensitivity tests including, using alternative proxies for main dependent and independent variables, and ruling out endogeneity concerns, among other.
FINANCE RESEARCH LETTERS
(2023)
Article
Economics
Xiaohang Ren, Yan Zhong, Xu Cheng, Cheng Yan, Giray Gozgor
Summary: This study uses a dynamic panel model to analyze the data of Chinese listed firms from 2011 to 2018 and finds that carbon price uncertainty increases stock price crash risk. The impact is more significant in heavily polluting industries and after the Paris agreement. The study identifies two channels through which carbon price uncertainty affects stock prices, namely managers hoarding bad news and investors' heterogeneity. Reducing information asymmetry can mitigate the influence of carbon price uncertainty on stock price crash risk. The findings highlight the important implications of carbon price uncertainty as an underexplored factor induced by catastrophe risk control.
Article
Business
Nana Xu, Zhifang He, Fangzhao Zhou, Wenjie Ding, Jiaqi Chen
Summary: Geopolitical uncertainty has a significant impact on stock prices in the stock market, with a greater influence on stock price crash risk than economic policy uncertainty. Firms with synchronized stock prices, low analyst coverage ratio, low institutional holdings, and large investor heterogeneity are more vulnerable to geopolitical shocks, leading to future stock price crashes. This study highlights the importance of promoting efficient information transmission systems and improving corporate governance.
EMERGING MARKETS FINANCE AND TRADE
(2023)
Article
Psychology, Multidisciplinary
Nengrui Xu, Jing Liu, Huan Dou
Summary: This article examines the impact and mechanism of ESG information disclosure on a company's future stock price crash risk. The findings highlight the significant role of ESG disclosure in reducing stock price crash risk, particularly in state-owned enterprises, companies with higher agency costs, and during bull markets. The study also reveals that companies choose to disclose ESG information to address information asymmetry issues and enhance corporate reputation capital. These findings emphasize the importance of strengthening ESG construction in improving resource allocation efficiency and promoting capital market development.
FRONTIERS IN PSYCHOLOGY
(2022)
Article
Business, Finance
Xiaoxiao Wang, Haiming Liu
Summary: This study investigates the impact of short-term loan rollover restrictions on stock price crash risk using a quasi-natural experiment of China's 2007 regulatory change. The research finds that the rollover restriction reduces stock price crash risk, particularly for firms with higher agency costs or a higher risk of government intervention. Transmission mechanism tests support the idea that rollover restrictions decrease stock price crash risk through information asymmetry and agency cost channels via enhanced monitoring. However, the rollover restriction also leads to a higher liquidity risk, although it does not dominate.
PACIFIC-BASIN FINANCE JOURNAL
(2022)
Article
Business, Finance
Kai Wu, Zejun Jin, Maobin Xu
Summary: This study evaluates the financial risk of external guarantee activities by listed firms in China from 2008 to 2017 and explores the motivations behind them. The findings show a positive association between the intensity of external guarantees and stock price crash risk, especially in cases with strong information asymmetry. Asymmetric contracts and guarantee relationships contribute to crash risk, with the management hiding guarantee risk while analysts reveal it. Furthermore, external guarantees strengthen the relationships between banks and firms.
PACIFIC-BASIN FINANCE JOURNAL
(2022)
Article
Economics
Minghui Yang, Shaoming Chen, Jiawen Wang, Yan Wang
Summary: This paper investigates the impact of corporate social responsibility (CSR) on stock price crash risk and examines the moderating effect of analyst coverage. The study finds that CSR is negatively associated with crash risk, but analyst coverage does not amplify the positive role of CSR in reducing financial opacity.
Article
Business, Finance
Ryan Flugum, Svetlana Orlova, Andrew Prevost, Li Sun
Summary: The study shows that institutional distraction significantly affects stock price stability and the information environment, increasing crash risk for companies, especially those with higher information opacity. Furthermore, institutional distraction has a lasting negative impact on the quality of the information environment, leading to investors' difficulty in accurately processing information.
JOURNAL OF BUSINESS FINANCE & ACCOUNTING
(2021)
Article
Business
Wenbing Luo, Ziyan Tian, Xusheng Fang, Mingjun Deng
Summary: This study investigates the impact of ESG performance on the probability of stock price crashes, finding that commendable ESG performance lowers the likelihood of such crashes by curbing earnings management and corporate risk. However, the positive influence diminishes with increased analyst coverage. Furthermore, good ESG performance has a more significant effect on non-state companies.
CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT
(2023)
Article
Business, Finance
Junchao Lou, Ruihong Li, Tidong Zhang, Yiling Zhang
Summary: This paper examines the relationship and mechanism between stock price crash risk and debt financing cost using corporate bonds issued by Chinese A-share listed companies from 2011 to 2021 as a sample. The study finds that an increase in stock price crash risk significantly raises the credit spread and issue size of corporate bond issuance, while it does not have a significant impact on the expected probability of default and Z-value.
FINANCE RESEARCH LETTERS
(2023)
Article
Business, Finance
Ayesha Qayyum, Ijaz Ur Rehman, Faisal Shahzad, Noman Khan, Faisal Nawaz, Panagiotis Kokkalis, Bruno S. Sergi
Summary: The study found that board gender diversity can reduce the stock price crash risk of the firm, especially in companies with three or more female directors on the board, where the impact is more significant.
BORSA ISTANBUL REVIEW
(2021)
Article
Business, Finance
Jiangjiao Duan, Jingjing Lin
Summary: This study investigates the impact of information disclosure of COVID-19 specific medicine on stock price crash risk. The results show that abnormal COVID-19 disclosure intensifies the degree of stock price crash risk, providing new evidence of exaggerated information disclosure causing stock price crash.
FINANCE RESEARCH LETTERS
(2022)
Article
Business, Finance
Shiwei Su, Songbo Jia, Guangping Shi
Summary: This paper examines the correlation between leverage adjustment behavior and the risk of stock price crash, using the data of China's A-share listed companies from 2011 to 2021. The findings suggest that the leverage adjustment behavior increases firms' risk of stock price crash, especially for state-owned listed companies. Furthermore, the analysis reveals that the risk of stock price crash further amplifies when there is high information asymmetry.
FINANCE RESEARCH LETTERS
(2023)
Article
Business
Mariela Carvajal, Muhammad Nadeem, Rashid Zaman
Summary: This study investigates the impact of board gender diversity (BGD) on biodiversity initiatives of firms, finding a significant positive association between BGD and biodiversity restoration protection and impact reduction initiatives. The research also suggests that gender diversity is critical for developing strategies concerning restoration, protection, and impact reduction of biodiversity and ecosystems.
BUSINESS STRATEGY AND THE ENVIRONMENT
(2022)
Article
Business, Finance
Rashid Zaman, Nader Atawnah, Muhammad Nadeem, Stephen Bahadar, Irfan Haider Shakri
Summary: This study examines the impact of asset redeployability on corporate misconduct and finds a significant positive relationship. The results suggest that an increase in the proportion of redeployable assets leads to higher corporate fines, and this relationship varies across different types of misconduct and industries. The channel analysis indicates that managerial risk-taking may be a potential mechanism through which asset redeployability is associated with misconduct. Furthermore, tests show that corporate misconduct related to asset redeployability leads to a decrease in firm value.
JOURNAL OF BUSINESS FINANCE & ACCOUNTING
(2022)
Article
Business
Mohammed Benlemlih, Muhammad Arif, Muhammad Nadeem
Summary: This paper investigates the relationship between institutional ownership and greenhouse gas (GHG) emissions using data from the UK and the USA. The findings show that institutional ownership is associated with lower GHG emissions, and this relationship is not significantly different between the two countries. The study also explores the possible channels through which institutional investors affect GHG emissions and examines the moderating effects of litigation risk, board gender diversity, and stewardship codes on this relationship.
BRITISH JOURNAL OF MANAGEMENT
(2023)
Article
Business
Sanaullah Farooq, Christopher Gan, Muhammad Nadeem
Summary: This study investigates the impact of boardroom gender diversity on investment inefficiency, using a sample of UK listed firms from 2005 to 2018. The findings suggest a negative and significant association between boardroom gender diversity and investment inefficiency, supporting the theoretical predictions. The study also identifies three possible channels through which boardroom gender diversity affects investment efficiency. The results highlight the importance of recent policy initiatives on increasing female representation in corporate boards.
CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW
(2023)
Article
Business, Finance
Muhammad Haseeb, Nurul Shahnaz Mahdzan, Wan Marhaini Wan Ahmad
Summary: This study empirically examines the impact of firms' Shariah compliance on firm-specific stock price crash risk (SPCR). The findings reveal that Shariah-compliant firms are less likely to hoard bad news and engage in earnings management, which ultimately reduces SPCR.
INTERNATIONAL JOURNAL OF ISLAMIC AND MIDDLE EASTERN FINANCE AND MANAGEMENT
(2023)
Article
Business
Khurshid Ali, Muhammad Nadeem, Rakesh Pandey, Gurmeet Singh Bhabra
Summary: This study examines the relationship between climate change actions and the cost of debt for firms in the S&P 500. The findings indicate that investors reward corporate climate efforts by offering lower cost funds, irrespective of the industry's sensitivity to the environment. This relationship remains significant even after controlling for the impact of the ongoing pandemic.
BUSINESS STRATEGY AND THE ENVIRONMENT
(2023)
Article
Business
Ammar Ali Gull, Nazim Hussain, Sana Akbar Khan, Muhammad Nadeem, Alaa Mansour Zalata
Summary: This study examines the impact of board gender diversity on CSR decoupling from a corporate governance perspective. The results show a negative association between board gender diversity and CSR decoupling, with a stronger effect for balanced boards. Independent female directors are found to be more effective in monitoring decoupling than executive female directors. Additionally, the relationship between board gender diversity and CSR decoupling is stronger when overall governance is weak. These findings have important implications for both theoretical understanding and policy-making in the fields of corporate governance and CSR.
BRITISH JOURNAL OF MANAGEMENT
(2023)
Review
Business, Finance
Shabana Talpur, Muhammad Nadeem, Helen Roberts
Summary: This paper synthesizes the literature on corporate social responsibility decoupling (CSRD) from 2010 to 2020, examines its causes and consequences, and discusses other organizational attributes. The authors provide suggestions for future research in this area.
JOURNAL OF APPLIED ACCOUNTING RESEARCH
(2023)
Article
Business
Tanusree Jain, Rashid Zaman, Maretno Harjoto
Summary: The Behavioral agency model (BAM) suggests that executive risk preferences are affected by the losses and gains in their option wealth. Current option wealth reduces risk-taking while prospective option wealth increases risk-taking. This study examines the impact of distributive and procedural injustice in CEO compensation on risk-taking behavior and corporate social irresponsibility, finding that perceptions of unfairness amplify excessive risk-taking and decrease stakeholder value. These findings have important implications for advancing the BAM and understanding executive compensation design.
JOURNAL OF MANAGEMENT
(2023)
Article
Business, Finance
Nader Atawnah, Rashid Zaman, Jia Liu, Thaer Atawna, Aktham Maghyereh
Summary: This paper explores the impact of a firm's competitive environment, measured by import penetration, on its debt maturity structure. The study finds a significant positive relationship between foreign product competition and the proportion of short-term debt. The results are robust and confirm the positive effect of import penetration on short-term debt, especially for firms with high information asymmetry and weak external monitoring.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2023)
Article
Business
Rashid Zaman, Kaveh Asiaei, Muhammad Nadeem, Ihtisham Malik, Muhammad Arif
Summary: This study examines the impact of board diversity (demographics and structural diversity) on corporate eco-innovation and finds that an increase in diversity leads to higher levels of eco-innovation.
CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW
(2023)
Article
Business, Finance
Maisam Ali, Christopher Gan, Muhammad Nadeem
Summary: We study the impact of a CEO's expertise power on bank diversification. The results show that a CEO's expertise power is positively related to bank diversification. Market competition and board composition (size and independence) have a positive influence on this relationship. We also find that CEO delta and vega are the underlying mechanisms through which expertise power leads to greater diversification. We address endogeneity concerns and test result robustness using various econometric approaches. Our findings provide valuable insights for policymakers in formulating bank strategies regarding CEO behavior in diversification.
ACCOUNTING AND FINANCE
(2023)
Article
Business, Finance
Muhammad Arif, Christohper Gan, Muhammad Nadeem
Summary: This study aims to investigate the impact of EU directive 2014/95/EU on the quantity of ESG disclosures and the association between ESG disclosures and firms' earnings risk. The results show a significant positive impact of the EU directive on the quantity of ESG disclosures, and an enhanced association between ESG disclosures and firms' earnings risk during the post-directive period. This suggests that the mandatory NFI reporting requirements could boost the availability and quality of ESG related information.
MEDITARI ACCOUNTANCY RESEARCH
(2022)
Article
Business
Rashid Zaman, Tanusree Jain, Georges Samara, Dima Jamali
Summary: This article systematically reviews the development of CG-CSR research across different institutional contexts by examining 218 research articles published over a 27-year period. It categorizes and explores the nature of the relationship between CG and CSR, and identifies key themes where research in this area has lagged. The article presents a comprehensive agenda for future research in the field.
BUSINESS & SOCIETY
(2022)
