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Banking competition and stock price crash risk

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  • Wu, Yanghui

Abstract

This paper examines whether an increase in bank competition affects firms' share price crash risk, using A-share listed companies in China from 2009 to 2021 as a research sample. The study finds that firms' share price crash risk decreases with the increase of banking competition; the mediation test finds that the increase of banking competition inhibits corporate non-compliance and increases the disclosure requirements of internal control information, reducing the share price crash risk.

Suggested Citation

  • Wu, Yanghui, 2023. "Banking competition and stock price crash risk," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007791
    DOI: 10.1016/j.frl.2023.104407
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    References listed on IDEAS

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    Cited by:

    1. Kaiyuan Yang & Xiaoyan Huo & Zhaoyu Sun & Peigong Li & Stavros Sindakis & Saloome Showkat, 2024. "Investigating The Role of Accounting Information Comparability in Mitigating Stock Price Crash Risk: Evidence from China’s Knowledge-Based Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10022-10056, September.
    2. Sun, Yabin, 2024. "Bank competition and firm greenwashing: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).

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