题目：Asset Liquidity and Stock Price Crash Risk
Jian Zhou is the Lloyd Fujie/Deloitte Foundation Distinguished Professor at University of Hawaii at Manoa. His current research focuses on auditing, financial accounting and corporate finance. He has published 33 papers, including in top accounting and finance journals such as Journal of Accounting and Economics, Contemporary Accounting Research (4 times), Journal of Financial and Quantitative Analysis. His research has been featured in the Wall Street Journal, SmartMoney and has been referenced in Financial Accounting Theory and in top journals in accounting, finance, marketing and law. His research has been cited by a U.S. Securities and Exchange Commission study, a U.S. Government Accountability Office study, a joint letter to the US Congress from the Center for Audit Quality, the Council for Institutional Investors, and the CFA Institute. His research has been cited more than 3,300 times and has been downloaded more than 40,300 times. He is a two-time winner of Shirley M. Lee Research Award. He also won the Albert Nelson Marquis Lifetime Achievement Award from Marquis Who’s Who. He serves as a reviewer for top journals such as The Accounting Review, Contemporary Accounting Research, Management Science, and Strategic Management Journal. He also serves as an external grant reviewer for Hong Kong University Grants Committee and external PhD dissertation examiner for National University of Singapore. He served as a keynote speaker at Japan Audit Association Annual Meeting.
In this paper, we investigate whether asset liquidity is related to stock price crash risk for a large sample of Chinese listed companies. We find that asset liquidity increases crash risk. We further find that over-investment is the underlying channel for the positive relationship between asset liquidity and crash risk. Firms with higher asset liquidity are more likely to over-invest and thus increase crash risk. State-owned companies are more likely to over-invest compared to privately-owned companies and have higher crash risk. The positive relationship between state-owned companies and crash risk is driven by local government-owned companies instead of central government-owned companies. Among privately-owned companies, firms with higher Tobin’s Q are more likely to over-invest and have higher crash risk. Being the first to investigate the relationship between asset liquidity and stock price crash risk, we bring new insights and contribute significantly to the literature on asset liquidity and the literature on stock price crash risk.