Cash Dividend Policy, External Auditing and Stock Price Crash Risk: 
An Analysis based on Empirical Evidence from Listed Companies on GEM

Abstract

Abstract: Based on the sample data of China′s listed companies on GEM from 2010 to 2016, this paper analyzes and tests the governance effect of cash dividend policy on stock price crash risk of listed companies on GEM, and discusses how external audit affects the relationship between cash dividend policy and stock price crash risk of listed companies on GEM under the substitution effect of cash dividend policy. Research shows that cash dividend policy alone cannot significantly affect the stock price crash risk of listed companies on GEM,but high-quality external auditing can inhibit the stock future crash risk of listed companies on GEM; after considering the intermediary role generated by external audit, the cash dividend policy has obviously restricted the stock price crash risk of listed companies on GEM, which shows that the behavior of listed companies on GEM in distributing cash dividend policy is more rational and can inhibit the stock price crash risk of listed companies on GEM.

Key words: stock price crash risk, cash dividend policy, external audit, listed companies on GEM

LIN Chuan1,CAO Guo-hua2. Cash Dividend Policy, External Auditing and Stock Price Crash Risk: An Analysis based on Empirical Evidence from Listed Companies on GEM[J]. 商业研究.

References

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Cash Dividend Policy, External Auditing and Stock Price Crash Risk: An Analysis based on Empirical Evidence from Listed Companies on GEM

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