Stock Overpricing, Underwriting Fees, and Stock Price Crash Risk

Abstract

This paper systematically examines the impact of stock overpricing on stock price crash risk and its underlying mechanism based on data from Shanghai and Shenzhen A-share listed companies between 2011 and 2023. The research findings indicate a significant positive correlation between the degree of stock overpricing and stock price crash risk. Furthermore, by examining the mediating effect of underwriter sponsorship fees, the study verifies the pathway through which overpricing indirectly increases risk by raising issuance costs and intensifying conflict of interes