IDEAS home Printed from https://ideas.repec.org/a/bla/srbeha/v40y2023i6p901-923.html
   My bibliography  Save this article

Collusion or monitoring? Connected institutional investors and stock price crash risk in China

Author

Listed:
  • Yan Zhang
  • Yuheng Liang

Abstract

This paper investigates the impact of connected institutional investors on stock price crash risk. We document that the closer institutions are to the central position of the network, the greater the stock price crash risk, whereas the closer they are to the intermediary position, the smaller the stock price crash risk. Such results remain strong after conducting several robustness checks. Further evidences demonstrate that the collusion effect of central position, which is more pronounced for firms with higher insider ownership concentration, lower institutional ownership and lower regional marketization index, works through managers' asymmetric news disclosure, whereas the monitoring effect of intermediary position, which is more pronounced for firms with higher insider ownership concentration, higher institutional ownership and lower regional marketization index, works through better informativeness and control. Overall, our analyses provide insights into the relation between social embeddedness of individual economic activities and corporate governance.

Suggested Citation

  • Yan Zhang & Yuheng Liang, 2023. "Collusion or monitoring? Connected institutional investors and stock price crash risk in China," Systems Research and Behavioral Science, Wiley Blackwell, vol. 40(6), pages 901-923, November.
    • Handle: RePEc:bla:srbeha:v:40:y:2023:i:6:p:901-923
    DOI: 10.1002/sres.2924
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sres.2924
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sres.2924?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:srbeha:v:40:y:2023:i:6:p:901-923. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/1092-7026 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.