Individualism and stock price crash risk

An Zhe, Chen Zhian, Donghui Li, Lu Xing

Research output: Contribution to conferencePaperpeer-review


By employing a sample of 26,473 firms across 42 countries from 1990 to 2013, we show that firms located in countries with higher levels of individualism exhibit higher stock price crash risk. The increasing impact of individualism on crash risk is strengthened in firms with higher foreign institutional ownership, lower managerial discretion over information disclosure, and higher firm growth rates, and in countries with higher openness and lower information transparency. This increasing impact has been amplified in the period of global financial crisis and attenuated by the adoption of International Financial Reporting Standards. Various robustness tests and careful considerations of endogeneity confirm our findings
Original languageEnglish
Publication statusPublished - 2017
EventEuropean Financial Management Association: 2017 Annual Meetings - Athens, Greece
Duration: 28 Jun 20171 Jul 2017


ConferenceEuropean Financial Management Association
Internet address


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