Individualism and stock price crash risk

An, Z., Chen, Z., Li, D. and Xing, L. (2018) Individualism and stock price crash risk. Journal of International Business Studies, 49(9), pp. 1208-1236. (doi:10.1057/s41267-018-0150-z)

160978.pdf - Accepted Version



Employing a sample of 26,473 firms across 42 countries from 1990 to 2013, we find that firms located in countries with higher individualism have higher stock price crash risk. Furthermore, individualism can be transmitted by foreign investors from overseas markets to influence local firms’ crash risk, and can exacerbate the impact of firm risk taking and earnings management on crash risk. Moreover, the positive relation between individualism and crash risk is amplified during the global financial crisis and attenuated by enhanced country-level financial information transparency and the adoption of International Financial Reporting Standards.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Xing, Dr Lu
Authors: An, Z., Chen, Z., Li, D., and Xing, L.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Journal of International Business Studies
ISSN (Online):1478-6990
Published Online:19 April 2018
Copyright Holders:Copyright © 2018 Academy of International Business
First Published:First published in Journal of International Business Studies 49(9): 1208-1236
Publisher Policy:Reproduced in accordance with the publisher copyright policy

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