| Large Shareholder Tunneling and Risk of Stock Price Crash： Evidence from China |
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| 作者姓名： | Yongjian Shen Dequan Jiang Donghua Chen |
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| 基金项目： | We thank two anonymous referees and the editor who greatly improved the paper. Helpful comments were obtained from Xiangqin Qi, Fu Xin, Wei Xu, and Zhenye Yao from the seminars at Nanjing University. We acknowledge financial support from National Natural Science Foundation of China （Grant No. 71372032, 71302036 and 71272238） and the National Social Science Foundation （Grant No. 11AJL003）. Errors remain our own. |
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| 摘 要： | Although several studies have examined the economic consequences of large shareholders＇ tunneling behavior, little attention has been paid to the negative effects of tunneling on firms＇ extreme events. In this article, we investigate how tunneling behavior affects firm-level stock price crashes. The findings indicate that the probability of stock price crashes is positively associated with the extent of tunneling behavior by large shareholders. The positive relationship is more pronounced after the split of share structure reform and is moderated by the firm＇s financial conditions. This study contributes to the emerging body of literature focusing on the economic consequences of tunneling and stock price crashes. The conclusions drawn from the study also provide a frame of reference for investor protection and investment portfolios based on large shareholders＇ tunneling behavior in China.
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| 关 键 词： | 股票价格 隧道 股东 中国 证据 风险 极端事件 财务状况 |
Large Shareholder Tunneling and Risk of Stock Price Crash: Evidence from China |
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| Yongjian Shen,Dequan Jiang,Donghua Chen.Large Shareholder Tunneling and Risk of Stock Price Crash: Evidence from China[J].Frontiers of Business Research in China,2014,8(2):154-181. |
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| Authors: | Yongjian Shen ;Dequan Jiang ;Donghua Chen |
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| Institution: | 1. School of Accounting, Nanjing University of Finance and Economics, Nanjing 210046, China2. School of Business, Nanjing University, Nanjing 210093, China3. School of Business, Nanjing University, Nanjing 210093, China |
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| Abstract: | Although several studies have examined the economic consequences of large shareholders’ tunneling behavior, little attention has been paid to the negative effects of tunneling on firms’ extreme events. In this article, we investigate how tunneling behavior affects firm-level stock price crashes. The findings indicate that the probability of stock price crashes is positively associated with the extent of tunneling behavior by large shareholders. The positive relationship is more pronounced after the split of share structure reform and is moderated by the firm’s financial conditions. This study contributes to the emerging body of literature focusing on the economic consequences of tunneling and stock price crashes. The conclusions drawn from the study also provide a frame of reference for investor protection and investment portfolios based on large shareholders’ tunneling behavior in China. |
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| Keywords: | large shareholder tunneling behavior risk of stock price crash investor protection |
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