Search results

This study examines the influence of stock liquidity on stock price crash risk and the moderating role of institutional blockholders in Vietnam’s stock market.

Crash risk is measured by the negative coefficient of skewness of firm-specific weekly returns (NCSKEW) and the down-to-up volatility of firm-specific weekly stock returns (DUVOL). Liquidity is measured by adjusted Amihud illiquidity. The two-stage least squares method is used to address endogeneity issues.

Using firm-level data from Vietnam, we find that crash risk increases with stock liquidity. The relationship is stronger in firms owned by institutional blockholders. Moreover, intensive selling by institutional blockholders in the future will positively moderate the relationship between liquidity and crash risk.

Since stock liquidity could exacerbate crash risk through institutional blockholder trading, firm managers should avoid bad news accumulation and practice timely information disclosures. Investors should be mindful of the risk associated with liquidity and blockholder trading.

We contribute to the literature by showing that the activities of blockholders could partly explain the relationship between liquidity and crash risk. High liquidity encourages blockholders to exit upon receiving private bad news.

This study aims to explore the relationship between chief executive officer (CEO) power and stock price crash risk in India. Furthermore, it seeks to analyse how insider trades may moderate the impact of CEO power on stock price crash risk.

A study of 236 companies from the S&P BSE 500 Index (2014–2023) have been analysed through pooled ordinary least square (OLS) regression in the baseline analysis. To enhance the results' reliability, robustness checks include alternative methodologies, such as panel data regression with fixed-effects, binary logistic regression and Bayesian regression. Additional control variables and alternative crash risk measure have also been utilised. To address potential endogeneity, instrumental variable techniques such as two-stage least squares (IV-2SLS) and difference-in-difference (DiD) methodologies are utilised.

Stakeholder theory is supported by results revealing that CEO power proxies like CEO duality, status and directorship reduce one-year ahead stock price crash risk and vice versa. Insider trades are found to moderate the link between select dimensions of CEO power and stock price crash risk. These findings persist after addressing potential endogeneity concerns, and the results remain consistent across alternative methodologies and variable inclusions.

This study significantly advances research on stock price crash risk, especially in emerging economies like India. The implications of these findings are crucial for investors aiming to mitigate crash risk, for corporations seeking enhanced governance measures and for policymakers considering the economic and welfare consequences associated with this phenomenon.

A considerable amount of police evaluation research focuses on innovative approaches to reduce crime at places. This is hardly coincidental; policing and place-based scholars have found crime is highly concentrated, and when police focus on these places, they can prevent and reduce crime. The regularity of such findings led Weisburd (2015) to assert the existence of a “law of crime concentration.” Given that bold assertion, the authors test whether the law of crime concentration is generalizable to one of the most common public safety concerns that police handle—traffic crashes.

To determine whether the law of crime concentration applies to traffic crashes, the authors examined crash locations and times in all counties in Utah across four years. Following and expanding on Weisburd's methods, the authors calculate the bandwidth of concentration for these crashes and analyze various types by severity and possible explanations for variations in crash concentrations across the state.

A small proportion of street segments and intersections experience a disproportionately high number of crashes, and the degree of concentration of crashes may be even higher than that of crime. Further, there are variations in the levels of crash concentration across counties and in the severity of injuries resulting from the crashes.

Place-based criminologists and policing scholars have not often explored traffic crashes in their analyses. Yet, traffic problems take up a significant amount of law enforcement time and resources and are often priorities for most law enforcement agencies. Given what the authors know from traffic, policing and crime and place research, targeted approaches at micro traffic crash hot spots can be beneficial for public safety prevention.

This study is the first to explore the application of Weisburd's Law of Crime Concentration to traffic crashes. Given that police spend a significant amount of time and resources on traffic-related problems in their jurisdiction, finding more effective, evidence-based approaches to address this public safety concern should be a high priority for police and researchers alike.

WIth limited research on the effects of variable message sign (VMS) message content and verbiage on revealed driver behavior, this study aims to investigate how different verbiage of crash-related messages are related to the diversion rate.

Using ordered logit models, the associations of message verbiage with diversion rates during crash incidents were assessed using five years of VMS message history within a section of I-15 in the state of Utah.

A significant impact of message verbiage on the diversion rate was observed. Based on the analysis results, the crash message verbiage with the highest diversion was found to be miles to crash + “prepare to stop,” followed by crash location + delay information, miles to crash + “use caution” + lane of the crash, etc. In addition, the diversion rate was found to be correlated to some roadway characteristics (e.g. occupancy in mainline, weather condition and light condition) along with the temporal variations.

These findings could be used by transportation agencies (e.g. state department of transportation [DOTs]) to make informed decisions about choosing the message verbiage during future crash incidents. This study also revealed that higher diversion rates are associated with a shorter distance between the crash location and VMS device location, recommending increasing the number of VMS devices, particularly in crash-prone areas.

The authors provide a comprehensive empirical examination on the impact of earnings quality on stock price crash risk in China.

The authors acknowledge and distinguish two-dimensional proxies for earnings quality – accounting-based (earnings management degree) and market-based (earnings transparency) known in accounting and finance literature.

The authors find that both generally indicate that better earnings quality is associated with less crashes. However, extremely high earnings transparency interacted with insider trading profit can also actually exacerbate stock price crashes.

This study is the first to highlight the pertinence of accounting-based measures to proxy for earnings quality in a fast-growing emerging market environment such as China.

To support the standardized evaluation of bicyclist automatic emergency braking (AEB) systems, test scenarios, test procedures and test system hardware and software tools have been investigated and developed by the Transportation Active Safety Institute (TASI) at Indiana University-Purdue University Indianapolis. This paper aims to focus on the development of test scenarios and bicyclist surrogate for evaluating vehicle–bicyclist AEB systems.

The harmonized general estimates system (GES)/FARS 2010-2011 crash data and TASI 110-car naturalistic driving data (NDD) are used to determine the crash geometries and environmental factors of crash scenarios including lighting conditions, vehicle speeds, bicyclist speeds, etc. A surrogate bicyclist including a bicycle rider and a bicycle surrogate is designed to match the visual and radar characteristics of bicyclists in the USA. A bicycle target is designed with both leg pedaling and wheel rotation to produce proper micro-Doppler features and generate realistic motion for camera-based AEB systems.

Based on the analysis of the harmonized GES/FARS crash data, five crash scenarios are recommended for performance testing of bicyclist AEB systems. Combined with TASI 110-car naturalistic driving data, the crash environmental factors including lighting conditions, obscuring objects, vehicle speed and bicyclist speed are determined. The surrogate bicyclist was designed to represent the visual and radar characteristics of the real bicyclists in the USA. The height of the bicycle rider mannequin is 173 cm, representing the weighted height of 50th percentile US male and female adults. The size and shape of the surrogate bicycle were determined as 26-inch wheel and mountain/road bicycle frame, respectively. Both leg pedaling motion and wheel rotation are suggested to produce proper micro-Doppler features and support the camera-based AEB systems.

The results have demonstrated that the developed scenarios, test procedures and bicyclist surrogate will provide effective objective methods and necessary hardware and software tools for the evaluation and validation of bicyclist AEB systems. This is crucial for the development of advanced driver assistance systems.

The purpose of this paper is to investigate the influence of driver demographic characteristics on the driving safety involving cell phone usages.

A total of 1,432 crashes and 19,714 baselines were collected for the Strategic Highway Research Program 2 naturalistic driving research. The authors used a case-control approach to estimate the prevalence and the population attributable risk percentage. The mixed logistic regression model is used to evaluate the correlation between different driver demographic characteristics (age, driving experience or their combination) and the crash risk regarding cell phone engagements, as well as the correlation among the likelihood of the cell phone engagement during the driving, multiple driver demographic characteristics (gender, age and driving experience) and environment conditions.

Senior drivers face an extremely high crash risk when distracted by cell phone during driving, but they are not involved in crashes at a large scale. On the contrary, cell phone usages account for a far larger percentage of total crashes for young drivers. Similarly, experienced drivers and experienced-middle-aged drivers seem less likely to be impacted by the cell phone while driving, and cell phone engagements are attributed to a lower percentage of total crashes for them. Furthermore, experienced, senior or male drivers are less likely to engage in cell phone-related secondary tasks while driving.

The results provide support to guide countermeasures and vehicle design.

The aim of this paper is to provide additional insights on the association between real earnings management (REM) and crash risk, particularly from the perspective of an emerging market economy. It also examines the moderation role that internal and external corporate governance may play in this area.

Relying on archival data from the RESSET and CSMAR databases over a timeframe from 2010 to 2018 of China listed company, the authors test the hypotheses by regressing common measures of crash risk on the treatment variable (REM) and crash risk control variables identified in the prior crash risk literature. The authors also introduce monitoring proxies (internal controls as an internal governance and institutional ownership as an external governance) and assess how effective internal and external governance moderate the relation between REM and stock price crash risk.

The results suggest firms with higher REM have a significantly greater stock price crash risk, and that this association is mitigated by external monitoring. That is, greater institutional ownership, particularly pressure insensitive owners, mitigates the impact of REM on stock price crash risk. However, internal control does not mitigate the association between REM and stock price crash risk.

Following the passage of the Sarbanes–Oxley (SOX) Act, prior research has documented an increase in the use of REM and a positive association between REM and cash risk. The authors demonstrate that they persist in one of the largest emerging markets where institutional regulations, market conditions and corporate behaviors are different from those in developed markets. Also, the assessment of the moderation effect of internal and external governance mechanisms could have meaningful implications for investors and regulators in Chinese and other emerging markets.

The purpose of this paper is to address the opposing views of the relationship between directors’ and officers’ liability insurance (D&O insurance) and stock price crash risk in a major Asian emerging stock market.

This paper finds an endogenous relationship between D&O insurance and stock price crash risk. Hence, the two-stage least squares regression analysis is used to address the endogeneity issue when the relationship is examined. Moreover, this paper further controls the quality of other corporate governance mechanisms to investigate whether D&O insurance still has an effect on stock price crash risk.

The effect of D&O insurance coverage is significantly negatively related to firm-specific stock price crash risk in Taiwan. More importantly, even when the quality of other corporate governance mechanisms is controlled, the negative relationship between D&O insurance coverage and firm-specific stock price crash risk remains significant. The evidence supports that D&O insurance serves as an effective external monitoring mechanism, strengthens corporate governance, and thus reduces stock price crash risk.

Emerging Asian markets suffer a dearth of research on the relationship of D&O insurance coverage and the firm-specific stock price crash risk. Investigating the relationship in Taiwan, the present study fills the research void. The findings show that D&O insurance plays an important role in reducing stock price crash risk of Taiwanese firms even when other corporate governance mechanisms are in place.

This paper aims to investigate short selling and stock price crash risk. The authors find that short selling is positively associated with one-month-ahead stock price crash risk, consistent with the literature showing that short sellers are informed traders. The authors attribute this prediction ability to the information short sellers receive from foreign investors with high levels of ownership in a firm. The results shed light on policy issues regarding short selling regulation.