Opacity, Financial information Synchronicity and Stock Crash risk

This paper is aimed to investigate the relation between opacity, synchronicity and crash risk. It is expected opacity represent lower firm specific information and resulted in higher synchronicity and crash risk. In order to this aim, a sample composed of listed firms in Tehran Stock Exchange during 1381 to 1393 is examined. To investigate above relations, methods including logistic, panel data and Fama-Macbethregressions are used. The research findings confirm that crash cannot be attributed to opacity. Lack of relation between opacity and jump is recognized. Also, it cannot be claimed that opacity result in lower firm specific information and higher synchronicity. Latter findings are not sensitive to synchronicity and crash measures.