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Enterprise financialization and stock price crash risk

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  • Liu, LiHua
  • Li, YuQian

Abstract

In this paper, A-share listed companies are selected as data samples from 2009 to 2022 to explore the impact of the degree of corporate financialization on the risk of stock price collapse and its transmission mechanism. It is found that actual firms holding a certain amount of financial assets can reduce the risk of stock price collapse in the future; corporate financialization can reduce the risk of stock price collapse by alleviating financing constraints and enhancing investment efficiency.

Suggested Citation

  • Liu, LiHua & Li, YuQian, 2024. "Enterprise financialization and stock price crash risk," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012503
    DOI: 10.1016/j.frl.2023.104878
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    References listed on IDEAS

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    Cited by:

    1. Zheng Zhiyong & Xu Buyun & Xu Yongbin, 2024. "Family business financialization and green innovation in China from 2008 to 2023," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 2453-2479, December.
    2. Sun, Guanglin & Yin, Ding & Kong, Tao & Yin, Lei, 2024. "The impact of the integration of the digital economy and the real economy on the risk of stock price collapse," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).

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