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The spillover effect of delisting risk on stock price synchronicity of regional peer firms

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  • Li, Rensi

Abstract

This study examines the spillover and warning effects of delisting risk on regional peer companies, employs panel data of Chinese listed companies for regression analysis. The results indicate that delisting risk reduces stock price synchronicity among regional peer companies by increasing government subsidies, improving earnings quality, and enhancing investor attention. Further heterogeneity tests reveal that the warning effect of delisting risk is more pronounced when governance environment is weaker, investor confidence is lower, and regional economic development and regulatory levels are more insufficient. The findings confirm the transmission mechanism of delisting risk in financial markets and its theoretical impact on capital market pricing efficiency, offering new insights into the study of regional spillover effects.

Suggested Citation

  • Li, Rensi, 2026. "The spillover effect of delisting risk on stock price synchronicity of regional peer firms," Pacific-Basin Finance Journal, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:pacfin:v:96:y:2026:i:c:s0927538x25003452
    DOI: 10.1016/j.pacfin.2025.103008
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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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