IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i1p35-55.html
   My bibliography  Save this article

Determinants and Consequences of Risk Disclosure: Evidence from Chinese Stock Markets during the COVID-19 Pandemic

Author

Listed:
  • Yarong Hao
  • Bin Dong

Abstract

This study examines the determinants and consequences of firms’ disclosures related to the COVID-19 pandemic in annual financial reports in China. First, we find that firms with high growth opportunity or low stock liquidity tended to disclose COVID-19 pandemic information to mitigate information asymmetry. Second, our results show that voluntary risk disclosure significantly decreased stock risks due to the reduction of information asymmetry. We further find that stock price crash risks decreased for firms that reported risk information compared with those that did not. Our results suggest that detailed voluntary risk disclosure is needed to mitigate stock risks, especially in extreme situations.

Suggested Citation

  • Yarong Hao & Bin Dong, 2022. "Determinants and Consequences of Risk Disclosure: Evidence from Chinese Stock Markets during the COVID-19 Pandemic," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(1), pages 35-55, January.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:1:p:35-55
    DOI: 10.1080/1540496X.2021.1964468
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2021.1964468
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2021.1964468?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beata Zyznarska-Dworczak & Kristina Rudžionienė, 2022. "Corporate COVID-19-Related Risk Disclosure in the Electricity Sector: Evidence of Public Companies from Central and Eastern Europe," Energies, MDPI, vol. 15(16), pages 1-21, August.
    2. Jie Hao & Viet T. Pham, 2022. "COVID‐19 Disclosures and Market Uncertainty: Evidence from 10‐Q Filings," Australian Accounting Review, CPA Australia, vol. 32(2), pages 238-266, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:58:y:2022:i:1:p:35-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.