| Title | Stepping stone or stumbling block? The effect of stock index inclusions on firm performance |
| Author | |
| Corresponding Author | Li, Zhongfei |
| Publication Years | 2023-10-01
|
| DOI | |
| Source Title | |
| ISSN | 1350-4851
|
| EISSN | 1466-4291
|
| Abstract | China's stock market has many stock indexes that provide performance benchmarks of listed companies. Employing the staggered difference-in-differences (DID) method, this study examines the effect of inclusions in stock index on firm operation and performance. We confirm that inclusions in the CSI 500 significantly decrease firm performance and the results are robust across several tests. We provide direct evidence of a channel through which inclusion affects firm performance; specifically, we find that stock price informativeness experiences a significant decrease after inclusion in an index. Further, we find that the effect of stock index inclusions is also significant for firms in developed markets. Overall, these results shed light on the effect of stock index inclusions on a firm's real operation. |
| Keywords | |
| URL | [Source Record] |
| Indexed By | |
| Language | English
|
| SUSTech Authorship | Corresponding
|
| Funding Project | National Natural Science Foundation of China["71721001","71991474"]
|
| WOS Research Area | Business & Economics
|
| WOS Subject | Economics
|
| WOS Accession No | WOS:001091502100001
|
| Publisher | |
| ESI Research Field | ECONOMICS BUSINESS
|
| Data Source | Web of Science
|
| Citation statistics | |
| Document Type | Journal Article |
| Identifier | http://kc.sustech.edu.cn/handle/2SGJ60CL/582798 |
| Department | Department of Finance |
| Affiliation | 1.Sun Yat Sen Univ, Sch Business, Guangzhou, Peoples R China 2.Sun Yat Sen Univ, Ctr Financial Engn & Risk Management, Guangzhou, Peoples R China 3.Southern Univ Sci & Technol, Dept Finance, Shenzhen, Peoples R China 4.Sun Yat Sen Univ, Lingnan Coll, Guangzhou, Peoples R China 5.Southern Univ Sci & Technol, Dept Finance, 1088 Xueyuan Ave, Shenzhen, Guangdong, Peoples R China |
| Corresponding Author Affilication | Department of Finance |
| Recommended Citation GB/T 7714 |
Bai, Tianyu,Li, Zhongfei,Lin, Yuanjing,et al. Stepping stone or stumbling block? The effect of stock index inclusions on firm performance[J]. APPLIED ECONOMICS LETTERS,2023.
|
| APA |
Bai, Tianyu,Li, Zhongfei,Lin, Yuanjing,&Liu, Haiping.(2023).Stepping stone or stumbling block? The effect of stock index inclusions on firm performance.APPLIED ECONOMICS LETTERS.
|
| MLA |
Bai, Tianyu,et al."Stepping stone or stumbling block? The effect of stock index inclusions on firm performance".APPLIED ECONOMICS LETTERS (2023).
|
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