Data assets disclosure and stock price crash risk*

This study examines the impact of data assets disclosure on stock price crash risk. Using a large sample of Chinese A-share listed firms from 2007 to 2023, we find that data assets disclosure can help reduce crash risk. Mitigating information asymmetry, limiting management’s ability to hoard bad news and reducing agency costs are potential mechanisms. The effect of data assets disclosure on reducing crash risk is more pronounced for firms with larger size, more intense industry competition, and weaker internal governance. Collectively, our results reveal that data assets are valuable in reducing crash risk by facilitating the transmission of information.