|標題:||Corporate Transparency as a Defense against a Stock Price Plunge: Evidence from a Market-Crash Context|
Department of Management Science
|關鍵字:||公司透明度;資訊揭露;股價抗跌性;股市崩盤;變數重要性定序;Corporate transparency;Information disclosure;Stock price defense;Market crash;Variable importance ranking|
Stock market crashes and the related financial contagion effects on stock price are important issues in the field of finance. Preventing a sharp plunge in stock prices in reaction to a market crash is an important risk management task. However, there has not been any discussion about how a firm can better protect its stock value in a market crash. This study, being among the first of its kind, sets out to examine the impact of the information transparency of a firm on its ability to defend against a plunge in its stock price in the specific context of a market crash, as well as to perform screening for vital variables affecting stock price defense with a genetic algorithm as the variable importance ranking technique Utilizing unique pooled firm-event data for listed firms in Taiwan over the sample period 2003-2006, the results of this study substantiate the conjecture that a firm with superior information transparency has greater ability to defend its stock price on the day of a market crash. 1n addition, multiple regression results show that stock price defense is negatively related to Beta, while trading amount and P/E ratio are not statistically significant in explaining stock price defense.
Chiao Da Mangement Review
|Appears in Collections:||Chiao Da Mangement Review|
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