Stock Price Crash Risk on International Stock Markets

Download or read book Stock Price Crash Risk on International Stock Markets written by Dominick Franzi and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relationship between opacity in financial reporting and the distribution of stock returns. The performance of stocks in the Swiss stock market is analyzed in a sample period from 1985 till 2010 with regard to the level of firms' opaqueness in financial statements. Using earnings management as a measure for opacity, it is shown that opacity is associated with stock price crash risk. Opaque firms are more susceptible to stock price crashes, but not more prone to explore positive jump events than firms with high transparency in financial reporting.