RESEARCH ON OVERCONFIDENCE OF THE BOARD OF DIRECTORS, SUPERVISION MECHANISM AND THE RISK OF STOCK PRICE CRASH

  • Haiqin Zhang Panyapiwat Institute of Management. Nonthaburi
Keywords: stock price crash risk, overconfidence;, overoptimism, corporate supervision mechanism, board of directors

Abstract

From the perspective of behavioral finance, China's A-share listed companies in Shenzhen and Shanghai from 2007 to 2019 are taken as the research objects in this paper, and various influences of different sources, degrees and types of board overconfidence on the risk of stock price crash are empirically tested. Further research finds that the corporate supervision mechanism has an inhibitory effect on the stock price crash risk caused by different types of overconfidence, but most of them are not significant, indicating that the governance effect of the corporate supervision mechanism is limited. The research results presented in this paper can provide a reference for China to establish a perfect capital market provision system and carry out a regulatory reform.

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Author Biography

Haiqin Zhang, Panyapiwat Institute of Management. Nonthaburi

Ph.D. Student, Chinese Graduate School, Panyapiwat Institute of Management. Nonthaburi, Thailand
Research interest: behavioral finance; finance & accounting

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Abstract views: 88
PDF Downloads: 57
Published
2022-03-31
How to Cite
Zhang, H. (2022). RESEARCH ON OVERCONFIDENCE OF THE BOARD OF DIRECTORS, SUPERVISION MECHANISM AND THE RISK OF STOCK PRICE CRASH. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (2(33), 35-47. https://doi.org/10.35678/2539-5645.2(33).2022.35-47