Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)

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Information Disclosure Quality, Earnings Management and Stock Price Cash Risk: Evidence from China

Authors
Qi Wang1, An Zhai2, Qingyue Pang2, Haoyi Wang2, Xuanqi Chu1, *
1Department of Accounting and Finance, Macau University of Science and Technology, Cotai, China
2Department of Decision Sciences, Macau University of Science and Technology, Cotai, China
*Corresponding author. Email: pluto6620@gmail.com
Corresponding Author
Xuanqi Chu
Available Online 14 December 2022.
DOI
10.2991/978-94-6463-054-1_68How to use a DOI?
Keywords
information disclosure; earnings management; corporate governance; Emerging Market; stock price crash risk
Abstract

Information disclosure plays an important role in financial market, which has a substantial impact on the earing management and stock price crash risk. The quality of information disclosed is manipulated by insider’s selective disclosure, rendering falsifications in earing management and increasing the stock price crash risk. Whether this phenomenon exists in emerging markets such as China is an imperative empirical question. Therefore, we examine two hypotheses based on the managerial entrenchment theory. Our data is collected from China Stock Market and Accounting Research dataset (CSMAR). Referring to previous literature, we construct two measurements to capture the stock price crash risk for each listed firm, where one is NCSKEW and the other one is DUVOL. Also, we use a two-way fixed effect model (FEM) to estimate the parameters after controlling the individual-specific effect at the firm-level and the time effect. According to the regression result we find that the information quality is negatively related to the earnings management. Furthermore, we find that the higher the quality of disclosure is, the lower the risk of stock price crash is. Our findings make contributions to corporate governance and provide the direct enlightenment that mangers need to enhance the quality of information disclosure.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2022
ISBN
978-94-6463-054-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-054-1_68How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qi Wang
AU  - An Zhai
AU  - Qingyue Pang
AU  - Haoyi Wang
AU  - Xuanqi Chu
PY  - 2022
DA  - 2022/12/14
TI  - Information Disclosure Quality, Earnings Management and Stock Price Cash Risk: Evidence from China
BT  - Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
PB  - Atlantis Press
SP  - 622
EP  - 633
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-054-1_68
DO  - 10.2991/978-94-6463-054-1_68
ID  - Wang2022
ER  -