52주 최고가, 앵커링 편의, 그리고 주가급락위험

[Purpose] This study analyzes the association of share price crash risk and the investor’s dependence on 52－week high price in investment decisions. In particular, we examine how the recency and the frequency of updated 52－week high price information affect the risk of falling stock prices. [Methodology] We conduct a regression analysis based on s sample of companies listed on the Korean s ec urities market f rom 2005 to 2 017 to e xamine t he impact of 5 2－week peak price formation and renewal frequency on the stock price crash risk. [Findings] We find that the risk of stock price crash increases when the 52－week high price is formed more recently, while it decreases when the 52－week high price is updated more frequently. Despite the opacity of corporate information environment, investors tend to rely on the 52－week high price that is formed recently, thereby resulting in stock price crash. However, frequent renewal of stock high price may reduce the risk of stock price crash by allowing investors to re－evaluate the firm value. [Implications] This study could provide implications for management and investors in practice by providing empirical evidence on the relation between the investors’ cognitive bias and stock price crash that causes investors’ extreme economic losses.