Corporate risk disclosure, investor confidence, and stock price crash risk

The present investigation focuses on A-share listed firms over the period from 2011 to 2024, utilizing them as the research sample. Through the application of web crawling methodologies, it systematically collects annual reports and subsequently conducts textual analysis using Python to derive metrics pertaining to the extent of risk information disclosure. The construction of sophisticated models enables an in-depth exploration of the correlation between the degree of corporate risk information disclosure and the vulnerability to stock price crashes. This analysis further extends to assess the influence of pivotal factors, including investor sentiment, informational clarity, and the ownership structure, on this intricate relationship. Empirical evidence underscores that robust disclosure practices by enterprises significantly attenuate the likelihood of stock price collapses. Specifically, investor confidence is identified as a mediating variable that partially explains this relationship, whereas information transparency acts as a moderator. Moreover, the study elucidates that the inhibitory effect of risk information disclosure on stock price crash risks is particularly accentuated in privately-held enterprises.