Research Article
R&D Intensity and Stock Price Crash Risk: Based on OLS Multivariate Linear Regression
@INPROCEEDINGS{10.4108/eai.18-11-2022.2326840, author={Zhuoxin Li}, title={R\&D Intensity and Stock Price Crash Risk: Based on OLS Multivariate Linear Regression}, proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China}, publisher={EAI}, proceedings_a={ICEMME}, year={2023}, month={2}, keywords={research and development intensity; stock price crash risk; china}, doi={10.4108/eai.18-11-2022.2326840} }- Zhuoxin Li
Year: 2023
R&D Intensity and Stock Price Crash Risk: Based on OLS Multivariate Linear Regression
ICEMME
EAI
DOI: 10.4108/eai.18-11-2022.2326840
Abstract
This study investigates the impact of research and development intensity, the ratio of R&D expenditures, and the total assets of the firm (RDI) on stock price crash risk. To get the relationship between RDI and crash risk, this study uses multiple linear regression (OLS) on panel data of firms listed on SHSE and SZSE in China. The results show that RDI is positively associated with stock price crash risk. They are still robust after conducting a series of robustness tests, such as alternating a dependent variable and adding control variables. Further analyses display that the impact of RDI on crash risk is more significant for the firm with fewer independent directors, non-big 4 auditors, non-outside auditors, and higher analyst attention and reports. The findings in this study support notion that increasing RDI appears to increase stock price crash risk.
