Employee stock ownership plan and stock price crash risk  

作　　者：Yan Li Bao Sun Shangyao Yu 

机构地区：[1]Business School,Renmin University of China,Beijing 100872,China [2]Business School,Beijing Technology and Business University,Beijing 100048,China

出　　处：《Frontiers of Business Research in China》2019年第3期251-283,共33页中国高等学校学术文摘·工商管理研究（英文版）

基　　金：National Natural Science Foundation of China(No.71272150,and No.71602005);Key Projects of the National Social Science Research Fund of China(No.15AZD012);Humanities and Social Sciences Fund of the Ministry of Education(No.15YJC630164).

摘　　要：This paper examines whether the announcement of an employee stock ownership plan(ESOP)affects stock price crash risk and the mechanism by which the ESOP may influence crash risk,using a sample of Chinese A-share firms from the period 2014 to 2017.We provide evidenee that an ESOP announcement is significantly and negatively related to a firm's stock price crash risk.An ESOP announcement sends positive signals to the market that insiders are optimistic about a firmzs future value,which helps enhance investor confidence,resist the pressure for a fire sale caused by negative information disclosure,and reduce stock price crash risk.Further research shows that larger-scale,lower-priced and non-leveraged ESOPs are more helpful in reducing crash risk.This paper sheds lights on the impact of ESOPs in a volatile market environ merit.It also contributes to firms' implementatio n of ESOPs and the development of the legal system in capital markets.

关 键 词：EMPLOYEE STOCK OWNERSHIP plan(ESOP) CRASH risk Market SITUATION Signaling effect Leveraged ESOP China 

分 类 号：F42[经济管理—产业经济]