Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)

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Empirical Analysis of Stock Price Crash Risk of RE Industry: Evidence from China Fortune Land Development Co., Ltd.

Authors
Fangming Li1, *
1School of Social Science, University of Manchester, Manchester, M13 9PR, UK
*Corresponding author. Email: fmli2@outlook.com
Corresponding Author
Fangming Li
Available Online 26 September 2023.
DOI
10.2991/978-94-6463-246-0_39How to use a DOI?
Keywords
Economic policy uncertainty; Chinese RE company; return volatility
Abstract

The RE business is China’s core industry, and CFLD is a representative firm in the Chinese RE sector. China has implemented several laws for RE firms as part of its recent economic reform and measures to avert systemic risks. The “three red lines” strategy is one of the most well-known. The policy has a significant influence on the RE company’s operations and development. This paper measures the magnitude of the company’s stock price crash risk (SPCR, hereafter) by tracking the volatility of the CFLD stock price, earnings, and P/E value within 180 days before and after the release of the three red line policies. Consequently, it was determined that the danger of stock price collapse rose dramatically following the announcement of the CFLD policy.

Copyright
© 2024 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 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
26 September 2023
ISBN
978-94-6463-246-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-246-0_39How to use a DOI?
Copyright
© 2024 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  - Fangming Li
PY  - 2023
DA  - 2023/09/26
TI  - Empirical Analysis of Stock Price Crash Risk of RE Industry: Evidence from China Fortune Land Development Co., Ltd.
BT  - Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
PB  - Atlantis Press
SP  - 317
EP  - 325
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-246-0_39
DO  - 10.2991/978-94-6463-246-0_39
ID  - Li2023
ER  -