The impact of COVID-19 on the crash risk of registered new shares in China

After the outbreak of COVID-19, with the stock market fluctuating and sluggish, the registration system reform of the securities issuance is steadily advanced in China. Based on this, the paper uses difference-in-differences (DID) model to investigate the impact of COVID-19 on the stock price crash...

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Detalles Bibliográficos
Autores principales: Duan, Jiangjiao, Lin, Jingjing
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2023
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10122957/
http://dx.doi.org/10.1016/j.pacfin.2023.102037
Descripción
Sumario:After the outbreak of COVID-19, with the stock market fluctuating and sluggish, the registration system reform of the securities issuance is steadily advanced in China. Based on this, the paper uses difference-in-differences (DID) model to investigate the impact of COVID-19 on the stock price crash risk of IPOs. By comparing registration-based and approval-based new shares, the empirical results of this paper show that due to the COVID-19 pandemic, the stock price crash risk of registered new shares has increased significantly. Moreover, with higher investor turnover rate and higher institutional shareholding ratio, the stock price crash risk of registered new shares affected by the pandemic is higher.

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