Abstract
This paper explores the relationship between the leverage adjustment behavior and the risk of stock price crash. Selecting the data of China's A-share listed companies from 2011 to 2021 as the research sample. The results show that, the leverage adjustment behavior will increase firms’ stock price crash risk; the positive relationship between the leverage adjustment level and stock price crash risk of state-owned listed companies is more significant than that of non-state-owned listed companies; further analysis finds that when the information asymmetry is higher, the leverage adjustment behavior will further increase firms’ stock price crash risk.
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