JFRM  Vol.6 No.4 , December 2017
Group Relations and Stock Crash Risk in China
Abstract: Compared with independent enterprises, the group has internal talent market and provides a broad development space for the management, which can partially alleviate the management agent problem in original governance model. We use all the A shares of the company data from the CSMAR data base as the sample. We find that the group relations can reduce risk of stock price collapse, and correlation may weaken in state-owned group.
Cite this paper: Wang, Q. (2017) Group Relations and Stock Crash Risk in China. Journal of Financial Risk Management, 6, 389-396. doi: 10.4236/jfrm.2017.64028.

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