Sticky Cost Behavior and Stock Price Crash Risk
| Autor: | Chia-MeiLin, 林嘉美 |
|---|---|
| Rok vydání: | 2016 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 104 This study provides strong and robust evidence that sticky costs reliably predict stock price crash risk. Using a large sample of U.S. firms over the period 1991–2003, we find that sticky cost behavior, as measured by the method in Weiss (2010), is associated with a greater likelihood of a firm’s future stock price crashes. This finding holds for multiple measures of sticky cost and crash risk, and is robust to controlling for other known determinants of crash risk, year-fixed effects and firm-fixed effects. Moreover, we find that the relation between sticky cost behavior and crash risk is more pronounced for firms with lower information transparency. Overall, our results are consistent with the notion that information transparency limits managerial incentive and ability to overstate performance and hide bad news from investors, which, in turn, reduces stock price crash risk. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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