Influencing Factors of Stock Price Crash Risk

Abstract

The research on preventing the stock price crash risk is of great significance. Previous literature has examined many influencing factors of crash risk. This paper surveys the burgeoning literature on stock price crash risk. It makes a detailed and comprehensive review of the relevant literature from four parts: (i) the effects of behavioral characteristics of corporate management and shareholders on the stock price crash risk; (ii) the impact of internal corporate decisions on the stock price crash risk; (iii) the influence of external regulatory forces on the stock price crash risk; (iv) the impact of national systems, social habits, as well as the economic policy uncertainty on the stock price crash risk. This literature review is a supplement to the prior literature and is of great significance.