Broadband infrastructure and stock price crash risk: Evidence from a quasi-natural experiment

Chen, Z; Cao, Y; Feng, Z; Lu, M; Shan, Y

Broadband infrastructure and stock price crash risk: Evidence from a quasi-natural experiment

Chen, Z Cao, Y Feng, Z Lu, M Shan, Y

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Publisher:: ACADEMIC PRESS INC ELSEVIER SCIENCE
Publication Type:: Journal Article
Citation:: Finance Research Letters, 2023, 58
Issue Date:: 2023-12-01

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Full metadata record

Field	Value	Language
dc.contributor.author	Chen, Z
dc.contributor.author	Cao, Y
dc.contributor.author	Feng, Z
dc.contributor.author	Lu, M
dc.contributor.author	Shan, Y https://orcid.org/0000-0003-2156-8722
dc.date.accessioned	2024-02-26T02:27:25Z
dc.date.available	2024-02-26T02:27:25Z
dc.date.issued	2023-12-01
dc.identifier.citation	Finance Research Letters, 2023, 58
dc.identifier.issn	1544-6123
dc.identifier.issn	1544-6131
dc.identifier.uri	http://hdl.handle.net/10453/175876
dc.description.abstract	This study investigates the impact of broadband infrastructure development on local firms’ stock price crash risk, using the Broadband China strategic implementation plan (BCS) as a quasi-natural experiment. We show that the BCS constrains management's negative news withholding by mitigating information asymmetry between investors and firms, thereby reducing stock price crash risk. The BCS's impact on crash risk is more pronounced in highly monopolized industries and regions with lower marketization levels. The positive effect of the BCS is also more evident among non-state-owned enterprises and firms with fewer political ties, greater financial constraints, lower institutional ownership, and management possessing financial and academic expertise. Overall, our findings offer new insights into the benefits of broadband infrastructure development for stock market stability and enhancement, supporting continued promotion of national broadband infrastructure development.
dc.language	English
dc.publisher	ACADEMIC PRESS INC ELSEVIER SCIENCE
dc.relation	http://purl.org/au-research/grants/arc/DP210101354
dc.relation	http://purl.org/au-research/grants/arc/DP210101004
dc.relation.ispartof	Finance Research Letters
dc.relation.isbasedon	10.1016/j.frl.2023.104026
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject	1502 Banking, Finance and Investment
dc.subject.classification	Finance
dc.subject.classification	3502 Banking, finance and investment
dc.title	Broadband infrastructure and stock price crash risk: Evidence from a quasi-natural experiment
dc.type	Journal Article
utslib.citation.volume	58
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	embargoed	*
utslib.copyright.embargo	2025-12-01T00:00:00+1000Z
dc.date.updated	2024-02-26T02:27:24Z
pubs.publication-status	Published
pubs.volume	58

Abstract:

This study investigates the impact of broadband infrastructure development on local firms’ stock price crash risk, using the Broadband China strategic implementation plan (BCS) as a quasi-natural experiment. We show that the BCS constrains management's negative news withholding by mitigating information asymmetry between investors and firms, thereby reducing stock price crash risk. The BCS's impact on crash risk is more pronounced in highly monopolized industries and regions with lower marketization levels. The positive effect of the BCS is also more evident among non-state-owned enterprises and firms with fewer political ties, greater financial constraints, lower institutional ownership, and management possessing financial and academic expertise. Overall, our findings offer new insights into the benefits of broadband infrastructure development for stock market stability and enhancement, supporting continued promotion of national broadband infrastructure development.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/175876