TITLE:
Can Corporate Innovation Restrain the Stock Price Crash Risk?
AUTHORS:
Zhongpei Zhou, Dawei Pan
KEYWORDS:
Innovation, Stock Prices Crash Risk, Financing Constraints, External Supervision
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.7 No.1,
March
22,
2018
ABSTRACT: Preventing
the crash of stock prices and guaranteeing the steady of the capital market have become a significant
issue when the strong supervision of financial risk becomes a consensus. Taking
the A-share listed companies as research sample, this paper takes the
enterprise innovation behavior into analysis framework of the stock price crash
risk, and the study found that corporate innovation can curb the crash risk of
stock price effectively, especially in the firm facing with strong financing
constraints and the information transparency is equivocal. The research in this
paper provides a new idea for the market value management of listed companies,
and it also helps to control financial risks, maintain capital market
stability; more importantly, it enriches the existing literature.