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| Study on the Impact of Serial M&As on Stock Price Crash Risk |
| ZHUANG Mingming，LI Shanmin，LIANG Quanxi |
| 1.Guangdong University of Foreign Studies, Guangzhou, China; 2.Sun Yat-sen University, Guangzhou, China; 3. Guangxi University, Nanning, China |
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Abstract Based on the data of A-share listed companies in China from 2006 to 2019, this paper investigates whether and how serial acquisitions affect the stock price crash risk. The results show that serial acquisitions increase the stock price crash risk significantly. The relationship between them is more pronounced in the companies with higher agency costs. Further evidence shows that companies with serial acquisitions are more inclined to implement opacity information disclosure policies to cover up the poor performance caused by serial acquisitions, thus increasing the stock price crash risk. In addition, the positive effect of serial acquisitions on stock price crash risk is stronger when there are diversified or strange land acquisitions in serial acquisitions.
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Received: 04 November 2020
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