管理学院管理学和经济学前沿讲座之一九二讲
公司财务与金融投资学术讲座第87讲
讲座题目：Individualism and Firm-level Crash Risk
主讲嘉宾：李东辉（管理学院财务与投资系 教授）
讲座时间：2015年5月21日（周四）下午19:00-20:30
讲座地点：管理学院善思堂M531
主办院系：财务与投资系
欢迎广大师生积极参加！
摘要：This paper investigates the impact of individualism on firm level crash risk by employing an international panel data set of 26,473 firms across 42 countries, spanning from 1990 to 2013. The empirical results show that individualism significantly increases firm level crash risk, which suggests the overoptimism and overconfidence of managers in high individualism countries are more likely, implying high earnings management, more risky activities, and a higher likelihood of underestimating project risks. Various robustness tests confirm our main conclusion, including controlling for common factors influencing firm crash risk at both firm level and country level, alternative individualism measurements, alternative samples (excluding the US, the US and Japan, and balanced panels), alternative model specifications (weighted least square (WLS), Fama-Macbeth, Hierarchical Linear Model, within country median adjustments), and country level regressions. Although the endogeniety issue is less likely a concern in our study, we carefully take it into account and our main conclusion still remains valid. The results also show that this increasing impact is strengthened for firms with higher foreign institutional ownership, and in countries with more open markets, higher information asymmetry. The empirical results further show that during the Global Financial Crisis (GFC), this increasing impact is strengthened, implying that crash risk can be worsened by overall market financial constraints, while the adoption of International Financial Reporting Standard (IFRS) attenuates this increasing impact, implying that more accurate accounting report has a role in reducing crash risk.
