Corporate Social Responsibility Disclosure Quality and Stock Price Crash Risk: Evidence from China

In this paper we take China A-share listed companies from 2009 to 2019 as the sample and uses the fixed effects model to investigate the relevance between CSR disclosure quality and stock price crash risk. Specifically, the results show that: (1) There is a negative correlation between the disclosure quality and the stock price crash risk. (2) Under different financing constraints, there are important differences in the impact of disclosure quality on crash risk. In enterprises with higher financing constraints, the negative correlation between disclosure quality and future stock price crash risk will be weakened; (3) Compared to non-state firms, the inhibiting effect of CSR disclosure quality on crash risk is larger in state firms. Our work provides support for the positive impact of disclosure of CSR information on economic consequences, which is of great importance in stabilizing the stock market and promoting high quality economic development.