Financial-judicial specialization and stock price crash risk: Evidence from China

IF 5.4 2区 经济学 Q1 BUSINESS, FINANCE
Kedi Wang , Chen Wu
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引用次数: 0

Abstract

Our paper examines the impact of the improved financial-judicial specialization on Chinese capital market considering the establishment of China’s first financial court, that is, the Shanghai Financial Court, as an exogenous shock. Using a difference-in-differences (DID) estimation, we find that greater financial-judicial specialization is associated with lower risk of stock price crash. Our results also show that this effect is more pronounced for firms with poor internal control, opaque information environment, and weak internal supervision. The mechanism analysis also shows that the improvement of financial-judicial specialization will also lead to act less opportunistically and disclose more bad news. Overall, the results shed light on the important role of financial-judicial specialization in the Chinese capital market.

金融-司法专业化与股价暴跌风险:来自中国的证据
本文以中国首个金融法院(即上海金融法院)的成立为外生冲击,研究了金融-司法专业化程度的提高对中国资本市场的影响。通过差分法(DID)估计,我们发现金融-司法专业化程度越高,股价暴跌的风险越低。我们的结果还显示,对于内部控制不完善、信息环境不透明、内部监督薄弱的公司,这种效应更为明显。机制分析还表明,财务-司法专业化程度的提高也会导致企业减少机会主义行为,披露更多坏消息。总体而言,研究结果揭示了金融-司法专业化在中国资本市场中的重要作用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.60
自引率
10.00%
发文量
142
期刊介绍: International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.
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