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Academic Journal of Business & Management, 2023, 5(3); doi: 10.25236/AJBM.2023.050323.

Beyond Corporate Financial Disclosure: Impact of Abnormal Tone on Stock Price Crash Risk in China


Dongxiao Wu1, Xuhui Peng2

Corresponding Author:
Xuhui Peng

1Management School, Beijing Union University, Beijing, China

2School of Economics and Management, Hanshan Normal University, Chaozhou, China


The abnormal tone of corporate financial disclosures has recently received much academic attention. Despite China’s status as the world’s second-largest economy, studies of abnormal tone in corporate financial disclosure, especially on its influence on stock price crash risk, remain scarce. Therefore, we investigated the corporate financial disclosure of Chinese listed enterprises using Python and empirically tested the relationship between abnormal tone and stock price crash risk. The results show a positive relationship between abnormal tone and stock price crash risk. Further, abnormal tone may signal potential stock price crash risk, and managers could conceal managerial opportunism by adopting an abnormal tone in financial disclosure. Therefore, Chinese policymakers must be aware of the disclosure of abnormal tones and thereby strengthen the relevant assessment of corporate financial disclosure.


corporate financial disclosure; abnormal tone; stock price crash risk; China

Cite This Paper

Dongxiao Wu, Xuhui Peng. Beyond Corporate Financial Disclosure: Impact of Abnormal Tone on Stock Price Crash Risk in China. Academic Journal of Business & Management (2023) Vol. 5, Issue 3: 152-157. https://doi.org/10.25236/AJBM.2023.050323.


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