Internal Ties and Stock Price Crash Risk: Evidence from Chinese Listed Firms.
Drawing on information advantage and executive entrenchment perspectives, this study examines the impact of internal ties between independent directors and non‐CEO executives (hereafter, internal ties) on stock price crashes. Utilizing a dataset covering Chinese listed firms spanning 2005 to 2021, w...
| Publicado en: | Abacus Vol. 61; no. 3; pp. 753 - 786 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Sep2025
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=187843634&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 187843634 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Sep2025 vid: 61 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 187843634 10.1111/abac.12346 ppf: 753 ppct: 33 formats: fmt: – @attributes: type: T – @attributes: type: P size: 435KB tig: atl: Internal Ties and Stock Price Crash Risk: Evidence from Chinese Listed Firms. aug: au: Zhou, Jian Yu, Jianglong Lei, Xiaodong affil: China Academy of Corporate Governance, Nankai University Business School, Nankai University su: Information asymmetry Corporate governance Chinese corporations Financial crises Public companies Social capital sug: subj: Information asymmetry Corporate governance Chinese corporations Financial crises Public companies Social capital keyword: Independent directors Internal governance Internal ties Social trust Stock price crash risk ab: Drawing on information advantage and executive entrenchment perspectives, this study examines the impact of internal ties between independent directors and non‐CEO executives (hereafter, internal ties) on stock price crashes. Utilizing a dataset covering Chinese listed firms spanning 2005 to 2021, we find that internal ties alleviate information asymmetry between the board and management, reducing future stock price crash risk. This supports the information advantage hypothesis. Further analysis reveals the effect of internal ties on stock price crash risk is more evident in high social trust regions and among non‐state‐owned enterprises (non‐SOEs). Mechanism tests demonstrate that financial opacity and financial reporting conservatism are economic mechanisms through which internal ties affect stock price crashes. Our research sheds new light regarding the significance of internal ties in corporate governance and enriches the literature on internal governance. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2025 holdings: @attributes: islocal: N |
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