Terrorist attacks and energy firms' crash risk in stock markets: Evidence from China

Impact of terrorism on stock market: Evidence from developed and developing markets

“…Terrorist strive to achieve their objectives by inflicting losses across different aspects of the social fabric of a country ranging from loss of human lives to destruction of valuable physical infrastructure. The pervious literature established the relationship of different economic and financial aspects such as FDI, foreign trade, economic development, economic policies, stock market, and stock price crash risk with terrorism (Kong, Xiong, & Xiang, 2021;Meierrieks & Schneider, 2021;Zakaria, Jun, & Ahmed, 2019). For instance, Enders and Sandler (1996) observed a downfall in FDI by 13.5% in Spain and 11.9% in Greece in relation to terrorist risks.…”

Firms' exposures on COVID-19 and stock price crash risk: Evidence from China

“…Control Variables. According to the existing literature on the determinants of stock price crash ( Fu et al, 2021 ; Kong et al, 2021 a; Kong et al, 2021 b; Wen et al, 2019 ; Xu et al, 2021 ), we also introduce a vector of control variables, including profitability ( LROA ), the book-to-market equity ratio ( LBM ), firm size ( LSize ), leverage ( LLev ), the volatility ( Lsd ) and mean value ( LR ) of stock prices in a quarter. LROA is the return on assets, defined as the ratio of net income to total average assets of a firm last quarter.…”

Accounting Quality and Audit Attributes on the Stock Price Crashes in an Emerging Market

“…This is especially true of Arab Countries, which have limited natural resources and lower per capita revenues from oil and gas exports compared to countries such as Kuwait or Qatar and, at the same time, a large population (Brach and Loewe 2010). Moreover, recent studies in China provide empirical evidence that when terrorist attacks occur, the crash risk increases significantly (Kong et al 2021). Since no study has examined the impact of accounting quality and audit attributes on the SPCR of firms listed on the stock exchange market of Iraq before and after the emergence of ISIS, this paper is among the initial efforts assessing such an association.…”