Stock Overpricing, Underwriting Fees, and Stock Price Crash Risk

Huizhu Tan, Sailesh Tanna, Shuai Huang, Juncheng Luo

Research output: Contribution to journalArticlepeer-review

Abstract

This paper systematically examines the impact of stock overpricing on stock price crash risk and its underlying mechanism based on data from Shanghai and
Shenzhen A-share listed companies between 2011 and 2023. The research findings
indicate a significant positive correlation between the degree of stock overpricing and stock price crash risk. Furthermore, by examining the mediating effect of underwriter sponsorship fees, the study verifies the pathway through which overpricing indirectly increases risk by raising issuance costs and intensifying conflict of interes.
Original languageEnglish
Article number107781
JournalFinance Research Letters
Volume84
Early online date15 Jun 2025
DOIs
Publication statusPublished - Nov 2025

Bibliographical note

Publisher Copyright:
© 2025

Keywords

  • Stock Overpricing
  • Underwriting Fees
  • Stock Price Crash Risk

Fingerprint

Dive into the research topics of 'Stock Overpricing, Underwriting Fees, and Stock Price Crash Risk'. Together they form a unique fingerprint.

Cite this