Individualism and stock price crash risk

Zhe An, Zhian Chen, Donghui Li, Lu Xing

Research output: Contribution to journalArticleResearchpeer-review

75 Citations (Scopus)


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 - 2018


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

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