Ji, J. orcid.org/0000-0001-9533-0325, Sun, H. and Xu, H. (2024) Multiple large shareholders, blockholder trading and stock price crash risk. European Financial Management, 30 (3). pp. 1344-1384. ISSN 1354-7798
Abstract
We show that in a setting with a strong concern for controlling shareholder entrenchment, firms with multiple large shareholders (MLS) are more likely to experience stock price crashes. As a result, when anticipating future revelations of bad news concerning corporate misconduct on information disclosure, large shareholders can exploit their information advantage and initiate their sales ex ante as far as eight quarters ahead. The positive association between MLS and crashes is more pronounced in the presence of noncontrolling shareholders' sales. Also, the positive predictive power of MLS on crash risk is more potent in firms with weak internal or external governance.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Authors. European Financial Management published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, (http://creativecommons.org/licenses/by/4.0/) which permits use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | Multiple Large Shareholders; Blockholder Trading; Stock Price Crash Risk; Controlling Shareholder Entrenchment |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 06 Jul 2023 08:36 |
Last Modified: | 09 Oct 2024 14:21 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/eufm.12446 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:201152 |