دانلود رایگان مقاله انگلیسی ارتباطات سیاسی و قیمت سهام ریسک دارایی های نقدی: نقش اطلاعات واسطه - امرالد 2018

Abstract

Purpose – The purpose of this paper is to research the impact of firms’ political connections on the stock price crash risk. Design/methodology/approach – Empirical methodology is used in this study. Findings – Using a large sample of Chinese firms for the period 2008-2013, the authors find that corporate political connections can reduce the stock price crash risk. When managers are still in politics or firms are in high financial transparency of local governments, the relationship between political connections and the stock price crash risk is weakened. In addition, the authors’ research shows that the corporate political connections influence the stock price crash risk by affecting the speed of confirmation of bad news. Research limitations/implications – The findings in this study suggest that political connections will affect corporate disclosure. Practical implications – These results can help senior executives and investors make better decisions to prevent the stock price crash risk. Originality/value – This paper empirically analyzes the impact of different types of political connections on the stock price crash risk for the first time.

8. Conclusion

Using a large sample of Chinese firms for the period 2008-2013, we provide strong and robust evidence that corporate political connections are negatively associated with firm-specific stock price crash risk. This finding is consistent with the following view: political connections help companies to ease financing constraints and reduce bad news hoarding activities. Moreover, we show that the negative relationship between political connections and stock price crash risk is weaker either when firm’s senior executives are still in politics or companies are in high financial transparency of local governments. In our analysis of the impact mechanism, we find that political connections can increase the rate at which firms react to bad news, thereby curbing the risk of a share price crash.

This paper has important theoretical and practical significance. In theory, this paper first examines the political connections from the perspective of the stock price crash risk. Political connection as a typical way of informal institutional arrangement against the background of the transition of China’s economic system transition is widespread, and research into political associations is of great significance. This research has not only enriched the literature on political connections but also deepened the understanding of stock price crash risk. On the practical significance, the stock price crash risk serious damage to the capital market development. This paper provides a new approach for stakeholders and regulators to predict the stock price crash risk through strengthening the supervision of enterprises’ bad news. At the same time, this paper argues that executives’ personal experiences have an effect on their information disclosure behavior, so it is necessary to identify information disclosure report.