Abstract
Leveraging the natural experiment afforded by the Shenzhen Stock Exchange’s mandate for listed companies to offer an online voting platform to minority shareholders, this paper examines the relationship between minority shareholders’ online voting, corporate responsiveness, and stock price crash risk. Findings indicate that minority shareholder participation in online voting mitigates stock price crash risk. Regarding economic mechanisms, minority shareholders’ engagement in online voting can enhance corporate responsiveness to external information disclosure demand, thereby reducing the likelihood of management concealing negative news and subsequently lowering the stock price crash risk. Moreover, heterogeneity analysis shows that the impact of online voting is pronounced among companies with smaller market capitalization, lower leverage, non-state ownership, and less external oversight. Last, this study further identifies a beneficial impact of minority shareholder voting on crash risk reduction, even in companies predominantly controlled by majority shareholders.
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