Can Analyst Coverage Reduce Stock Price Crash Risk?—Evidence from China

摘要

Utilizing the date from 2010 to 2016 in China stock market, this paper studies the relation between analyst coverage and stock price crash risk. The result show style="font-family:Verdana;">s style="font-family:Verdana;"> that security analyst coverage increases the risk of stock crash. When further divid style="font-family:Verdana;">ing style="font-family:Verdana;"> the analysts into star analysts and non-star analysts, the research found that the star analyst coverage can decrease stock price crash risk, and non-star analyst coverage style="font-family:Verdana;">can style="font-family:Verdana;">increase the stock price crash risk. And with the rise of star analyst ratio, the stock price crash risk will be lower.