Individualism and stock price crash risk

An Zhe, Chen Zhian, Li Donghul, Lu Xing

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

Employing a sample of 26,473 firms across 42 countries from 1990 to 2013, we find that firms located in countries with higher individualism have higher stock price crash risk. Furthermore, individualism can be transmitted by foreign investors from overseas markets to influence local firms’ crash risk, and can exacerbate the impact of firm risk taking and earnings management on crash risk. Moreover, the positive relation between individualism and crash risk is amplified during the global financial crisis and attenuated by enhanced country-level financial information transparency and the adoption of International Financial Reporting Standards.
Original languageEnglish
Pages (from-to)1-29
JournalJournal of International Business Studies
Early online date19 Apr 2018
Publication statusE-pub ahead of print - 19 Apr 2018

Keywords / Materials (for Non-textual outputs)

  • cross-country study
  • national culture
  • individualism
  • stock price crash risk


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