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Stock Repurchase and Stock Price Crash Risk

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  • Jia, Haibo
  • Zhu, Ying
  • Chen, Xiaodan

Abstract

This paper selects the data of A-share listed companies in 2021–2021 to investigate the impact of stock repurchase on stock price crash risk. It is found that the implementation of stock repurchase by listed companies can indeed curb the risk of stock price crash; stock repurchase reduces the risk of stock price crash by improving the investor sentiment of individual stocks; and stock repurchase reduces the risk of stock price crash by increasing the information transparency.

Suggested Citation

  • Jia, Haibo & Zhu, Ying & Chen, Xiaodan, 2024. "Stock Repurchase and Stock Price Crash Risk," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012515
    DOI: 10.1016/j.frl.2023.104879
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    References listed on IDEAS

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    Cited by:

    1. Wadhwa, Kavita & Goodell, John W., 2024. "Political uncertainty and stock price crash risk: Insights from state-elections in an emerging market," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    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).
    3. Naresh Gopal & Ravi S. Mateti & Duong Nguyen & Gopala Vasudevan, 2024. "Stock buybacks and growth opportunities," Review of Quantitative Finance and Accounting, Springer, vol. 63(4), pages 1413-1429, November.

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