Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 5, 2022 erstellt
Beschreibung:
We analyze the effects of globalization-induced import competition on stock price crash risk. We hypothesize that managers in firms under greater threat of import competition face heightened career concerns. They are therefore more likely to accelerate the release of good news and withhold bad news about the future prospects of their firms. When such bad news is released at once, it can lead to a sudden and large decline in stock prices. We utilize variation in exposure to import competition using industry-level freight costs and show that firms under greater threat of foreign competition are more likely to withhold negative news and consequently face higher stock price crash risk