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We examine the effect of financialization on management earnings forecasts. Using a sample of Chinese main board listed companies over 8 years, we find that financialization decreases the probability and frequency of issuing management earnings forecasts. The results imply that financialization impedes firms' information disclosure and may negatively affect their long-term performance. [ABSTRACT FROM AUTHOR]

The inquiry letters of annual reports play an increasingly important role in performing the first-line supervision duties of Stock Exchange. Based on 2015–2017 annual report inquiry letters, this paper studies the impact of regulatory inquiry on stock price crash risk empirically. The results show that the Stock Exchange's inquiry on the annual report of listed companies reduces the stock price crash risk significantly, and the more questions are inquired by the Stock Exchange, the stronger inhibitory impact will be played on the companies' stock price crash risk. In addition, compared with companies replied to the inquiry letters in time, the inquiry has a stronger inhibitory effect on stock price crash risk of companies with delayed reply or no reply. [ABSTRACT FROM AUTHOR]