We evaluate the financial risk and explore potential motivation of pervasive external guarantee activities. Using a sample of Chinese A-share listed firms during the period from 2008 to 2017, we find a positive association between external guarantees intensity and stock price crash risk. High...

Using a sample of Chinese listed firms from 2003 to 2018, we show that firms with a high dependence on government subsidies exhibit large stock price crash risk. We establish causality of government subsidy dependence on crash risk using instrumental variable regression and a...

We evaluate the association between intangible intensity and stock price crash risk for U.S. listed firms from 1983 to 2017. The results show that intangible-intensive firms are associated with high crash risk. The decomposition of intangible intensity identifies goodwill as the driving force...