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ESG ratings, information transparency and stock price crash risk

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  • Xu, Xiaoyong
  • Wang, Ao

Abstract

This paper takes Chinese A-share listed companies from 2013 to 2023 as samples to systematically investigate the impact of corporate ESG performance on stock price crash risk and its underlying mechanisms. The findings are as follows: ESG performance significantly inhibits stock price crash risk; ESG ratings directly reduce stock price crash risk by enhancing the quality of information disclosure; and the mitigating effect of ESG performance on crash risk is stronger in firms with fewer analyst followings.

Suggested Citation

  • Xu, Xiaoyong & Wang, Ao, 2025. "ESG ratings, information transparency and stock price crash risk," Finance Research Letters, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pa:s1544612325016496
    DOI: 10.1016/j.frl.2025.108395
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    References listed on IDEAS

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    1. Yang, Junhua & He, Xing & Zhang, Menghao & Gao, Xinxiang & Gou, Congcong & Chen, Xilong, 2026. "Registration system reform and risk of stock price collapse: the mediating effect based on auditor reputation," Finance Research Letters, Elsevier, vol. 90(C).

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