A literature review of stock price crash risk: Evidence from its influencing factors

Abstract

Since the last century, stock price crash risk has always been a hot issue for researchers, capital market investors, corporate managements, and regulators. Therefore, it’s important to investigate what factors may affect stock price crash risk which may be helpful for stakeholders to effectively cope with and prevent the financial risk. In this paper, I investigate the existing literature of the influencing factors of stock price crash risk. Further, I did the distribution analysis of stock price crash risk by year and industry based on China’s A-share listed companies from 2011-2020. The result shows that, finance industry was exposed to slightest crash risk, whereas education industry was exposed to the highest. The summary and findings in this study may provide some implications to researchers, regulators, and investors.