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Major shareholder equity pledges and the risk of stock price crash based on external audit quality

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  • Zuo, Yu
  • Bai, Tao

Abstract

This study selects China's listed A-share firms from 2006 to 2022 as the research object to investigate the relationship between an equity pledge by a major shareholder and the risk of the company's stock price collapse. A significant negative correlation is found between equity pledges by major shareholders and the risk of share price collapse; equity pledges affect the risk of share price collapse through the firm's R&D investment.

Suggested Citation

  • Zuo, Yu & Bai, Tao, 2024. "Major shareholder equity pledges and the risk of stock price crash based on external audit quality," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003313
    DOI: 10.1016/j.frl.2024.105301
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    References listed on IDEAS

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