Group-Affiliated Analysts and Future Stock Price Crash Risk: Evidence from Korea

Based on the governance role of analysts and bad news hoarding theory of stock crash risk, this study examines the effect of group-affiliated analyst following on subsequent stock price crash risk using non-financial firms listed in the Korea Stock Exchange market, by focusing governance role of analysts as one of the main cause of the crash risk. In particular, we explore if subsequent stock price crash risk is affected when analysts are hired...