Individualism and stock price crash risk

Zhe An, Zhian Chen, Donghui Li, Lu Xing

Research output: Contribution to journalArticlepeer-review

78 Citations (SciVal)


Employing a sample of 26,473 firms across 42 countries from 1990 to 2013, we find that firms located in countries with higher individualism have higher stock price crash risk. Furthermore, individualism can be transmitted by foreign investors from overseas markets to influence local firms’ crash risk, and can exacerbate the impact of firm risk taking and earnings management on crash risk. Moreover, the positive relation between individualism and crash risk is amplified during the global financial crisis and attenuated by enhanced country-level financial information transparency and the adoption of International Financial Reporting Standards.

Original languageEnglish
Pages (from-to)1208-1236
Number of pages29
JournalJournal of International Business Studies
Issue number9
Publication statusPublished - 1 Dec 2018

Bibliographical note

Funding Information:
All authors have equal contributions to this article. We are grateful to Lemma Senbet (the editor), two anonymous reviewers, and an additional resource person for their insightful and constructive comments. For helpful suggestions, we thank Chen, John Goodell, Ambrus Kecskés, Dong Wook Lee, and Hongping Tan; conference participants at the 2016 AsianFA Annual Conference, the 2016 Young Finance Scholars’ Conference, the 2016 INFINITI Conference on International Finance, the 2017 FMA Asia/Pacific Conference, and the 2017 EFMA Annual Conference; and seminar participants at the universities of Edinburgh, Essex, Glasgow, Jinan, and Sun Yat-sen. Zhe An acknowledges the financial support from the New Academic Staff Support Grant of Monash University.

Publisher Copyright:
© 2018, Academy of International Business.


  • cross-country study
  • individualism
  • national culture
  • stock price crash risk

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation


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