The effect of the evergrande bankruptcy on Chinese real estate listed firms

Detalhes bibliográficos
Autor(a) principal: Martins, António Miguel Valente
Data de Publicação: 2024
Outros Autores: Moutinho, Nuno
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Texto Completo: http://hdl.handle.net/10198/30411
Resumo: The objective of the study is to examine the intra-industry effects of Evergrande’s bankruptcy on the Chinese real estate listed firms. Based on an event study, we evidence a negative and statistically significant stock price reaction to Evergrande’s bankruptcy announcement. These results are consistent with the contagion effect. We also find the highest negative impact on real estate firms with greater leverage and a higher similarity in cash flows with the bankrupt firm. Finally, the magnitude of the stock market reaction to Evergrande’s bankruptcy is reinforced or mitigated by firm-specific determinants such as size and liquidity.
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spelling The effect of the evergrande bankruptcy on Chinese real estate listed firmsBankruptcy AnnouncementIndustry RivalsContagionStock ReturnsEvent StudyThe objective of the study is to examine the intra-industry effects of Evergrande’s bankruptcy on the Chinese real estate listed firms. Based on an event study, we evidence a negative and statistically significant stock price reaction to Evergrande’s bankruptcy announcement. These results are consistent with the contagion effect. We also find the highest negative impact on real estate firms with greater leverage and a higher similarity in cash flows with the bankrupt firm. Finally, the magnitude of the stock market reaction to Evergrande’s bankruptcy is reinforced or mitigated by firm-specific determinants such as size and liquidity.This work was supported by national funds through FCT/MCTES (PIDDAC): UNIAG, UIDB/04752/2020 (DOI 10.54499/UIDB/04752/ 2020) (Nuno Moutinho) and UIDB/00685/2020 (António Martins).ElsevierBiblioteca Digital do IPBMartins, António Miguel ValenteMoutinho, Nuno2024-10-14T08:34:28Z20242024-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10198/30411engMartins, António Miguel; Moutinho, Nuno (2024). The effect of the evergrande bankruptcy on Chinese real estate listed firms. The Quarterly Review of Economics and Finance. ISSN 1062-9769. 98, p. 1-81062-976910.1016/j.qref.2024.101918info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-02-25T12:22:01Zoai:bibliotecadigital.ipb.pt:10198/30411Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-28T18:59:08.159598Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv The effect of the evergrande bankruptcy on Chinese real estate listed firms
title The effect of the evergrande bankruptcy on Chinese real estate listed firms
spellingShingle The effect of the evergrande bankruptcy on Chinese real estate listed firms
Martins, António Miguel Valente
Bankruptcy Announcement
Industry Rivals
Contagion
Stock Returns
Event Study
title_short The effect of the evergrande bankruptcy on Chinese real estate listed firms
title_full The effect of the evergrande bankruptcy on Chinese real estate listed firms
title_fullStr The effect of the evergrande bankruptcy on Chinese real estate listed firms
title_full_unstemmed The effect of the evergrande bankruptcy on Chinese real estate listed firms
title_sort The effect of the evergrande bankruptcy on Chinese real estate listed firms
author Martins, António Miguel Valente
author_facet Martins, António Miguel Valente
Moutinho, Nuno
author_role author
author2 Moutinho, Nuno
author2_role author
dc.contributor.none.fl_str_mv Biblioteca Digital do IPB
dc.contributor.author.fl_str_mv Martins, António Miguel Valente
Moutinho, Nuno
dc.subject.por.fl_str_mv Bankruptcy Announcement
Industry Rivals
Contagion
Stock Returns
Event Study
topic Bankruptcy Announcement
Industry Rivals
Contagion
Stock Returns
Event Study
description The objective of the study is to examine the intra-industry effects of Evergrande’s bankruptcy on the Chinese real estate listed firms. Based on an event study, we evidence a negative and statistically significant stock price reaction to Evergrande’s bankruptcy announcement. These results are consistent with the contagion effect. We also find the highest negative impact on real estate firms with greater leverage and a higher similarity in cash flows with the bankrupt firm. Finally, the magnitude of the stock market reaction to Evergrande’s bankruptcy is reinforced or mitigated by firm-specific determinants such as size and liquidity.
publishDate 2024
dc.date.none.fl_str_mv 2024-10-14T08:34:28Z
2024
2024-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10198/30411
url http://hdl.handle.net/10198/30411
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Martins, António Miguel; Moutinho, Nuno (2024). The effect of the evergrande bankruptcy on Chinese real estate listed firms. The Quarterly Review of Economics and Finance. ISSN 1062-9769. 98, p. 1-8
1062-9769
10.1016/j.qref.2024.101918
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
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instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
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institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
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