Item

Local FinTech development and stock price crash risk

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.
Type
Journal Article
Type of thesis
Series
Citation
Date
2023-05
Publisher
Elsevier BV
Degree
Supervisors
Rights
This is an author’s accepted version of an article published in Finance Research Letters. © 2023 Elsevier.