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Short-Term Loans and Long-Term Investments Impact on Stock Price Collapse Risk
- 1 Beijing Foreign Studies University
* Author to whom correspondence should be addressed.
Abstract
This paper examines the period from 2007 to 2020 using Chinese A-share listed companies as a research sample. From the perspectives of operational risk and information quality, the empirical analysis investigates the influence of short-term loans for long-term investments on the risk of stock price collapse. The results indicate that short-term loans for long-term investments exacerbate the risk of stock price collapse. The impact is primarily achieved through increasing corporate operational risk and earnings management, thereby intensifying the risk of stock price collapse. Simultaneously, the quality of internal control and managerial capabilities can, to a certain extent, moderate the influence of short-term loans for long-term investments on the risk of stock price collapse. This paper contributes to the research in the field of short-term loans for long-term investments and sheds light on the factors influencing the risk of stock price collapse, offering valuable insights for corporate governance and the mitigation of the risk of stock price collapse.
Keywords
short-term loans for long-term investments, operational risk, earnings management, stock price collapse risk
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Cite this article
Wang,Z. (2024). Short-Term Loans and Long-Term Investments Impact on Stock Price Collapse Risk. Journal of Applied Economics and Policy Studies,2,51-71.
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