Does Business Model Innovation Trigger Stock Price Crash Risk?
- SHI Yaya & YANG Deming
- Jinan University, 510632.
Business model innovation is gradually becoming an important path of enterprise development in the era of digital economy. Although business model innovation has greatly promoted the high-quality development of enterprises, it has also posed new challenges to the traditional economic system. Proceeding from the stock price crash risk, this paper uses large sample data of listed companies to explore the potential risks brought by business model innovation to the traditional capital market. It is found that business model innovation has a significant positive impact on the future stock price crash risk, which mainly comes from the innovation of the profit model and cash flow structure. Further research shows that compared with other enterprises, enterprises with a higher degree of information asymmetry and greater financial pressure as well as state-owned enterprises, face a higher stock price crash risk. This research to a certain extent addresses the existing theories. inadequate understanding about business model innovation, and more importantly, it shows that in the implementation of business model innovation, and especially of profit model innovation and of cash flow structure innovation, the enterprises need to be careful and should be concerned about the financial pressures generated by the business model innovation, to forestall the stock price crash risk and better promote the in-depth integration of the digital economy and real economy.
JEL：G32, G34, L22
- Business Model Innovation, Stock Price Crash Risk, Information Asymmetry, Financial Pressure