Local FinTech development and stock price crash risk

Wang, X; Cao, Y; Feng, Z; Lu, M; Shan, Y

Local FinTech development and stock price crash risk

Wang, X Cao, Y Feng, Z Lu, M Shan, Y

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Publisher:: ACADEMIC PRESS INC ELSEVIER SCIENCE
Publication Type:: Journal Article
Citation:: Finance Research Letters, 2023, 53
Issue Date:: 2023-05-01

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Field	Value	Language
dc.contributor.author	Wang, X
dc.contributor.author	Cao, Y
dc.contributor.author	Feng, Z
dc.contributor.author	Lu, M
dc.contributor.author	Shan, Y https://orcid.org/0000-0003-2156-8722
dc.date.accessioned	2024-03-07T03:34:40Z
dc.date.available	2024-03-07T03:34:40Z
dc.date.issued	2023-05-01
dc.identifier.citation	Finance Research Letters, 2023, 53
dc.identifier.issn	1544-6123
dc.identifier.issn	1544-6131
dc.identifier.uri	http://hdl.handle.net/10453/176242
dc.description.abstract	This study investigates the effect of financial technology (FinTech) development on stock price crash risk. We show that the development of FinTech can inhibit management from deliberately hiding bad news and alleviate information asymmetry, thereby reducing stock price crash risk. This effect is more pronounced among non-state-owned enterprises, firms with poor information environments and low-quality internal controls, and those in competitive industries and regions with high marketization. Overall, these findings suggest that FinTech development can mitigate the deliberate concealment of bad news by management and improve the timeliness of disclosure, leading to lower risks faced by investors.
dc.language	English
dc.publisher	ACADEMIC PRESS INC ELSEVIER SCIENCE
dc.relation	http://purl.org/au-research/grants/arc/DP210101354
dc.relation.ispartof	Finance Research Letters
dc.relation.isbasedon	10.1016/j.frl.2023.103644
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1502 Banking, Finance and Investment
dc.subject.classification	Finance
dc.subject.classification	3502 Banking, finance and investment
dc.title	Local FinTech development and stock price crash risk
dc.type	Journal Article
utslib.citation.volume	53
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access	*
dc.date.updated	2024-03-07T03:34:39Z
pubs.publication-status	Published
pubs.volume	53

Abstract:

This study investigates the effect of financial technology (FinTech) development on stock price crash risk. We show that the development of FinTech can inhibit management from deliberately hiding bad news and alleviate information asymmetry, thereby reducing stock price crash risk. This effect is more pronounced among non-state-owned enterprises, firms with poor information environments and low-quality internal controls, and those in competitive industries and regions with high marketization. Overall, these findings suggest that FinTech development can mitigate the deliberate concealment of bad news by management and improve the timeliness of disclosure, leading to lower risks faced by investors.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/176242