Corporate Governance and Firm-Specific Stock Price Crashes
Panayiotis C. Andreou
Cyprus University of Technology; Durham University - Durham Business School
University of Exeter - Xfi Centre for Finance and Investment
London School of Economics & Political Science (LSE) - Department of Accounting and Finance
Cyprus University of Technology; University of Durham
We investigate whether firms’ corporate governance systems affect their propensity to experience future stock price crashes. Results show that ownership structure, accounting opacity, as well as board structure and processes influence future crashes. These findings are stronger for firms that operate in less competitive industries and firms with greater return uncertainty, where the demand for managerial oversight is higher.
Number of Pages in PDF File: 50
Keywords: Crash Risk, Corporate Governance
JEL Classification: G30working papers series
Date posted: March 28, 2012 ; Last revised: March 26, 2013
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