New Food Safety Study Findings Have Been Reported by Investigators at Huazhong University of Science and Technology (The Impacts of Compulsory Food Liability Insurance Policy On Stock Price Crash Risk: Evidence From Chinese Food Industry): Foodborne Diseases and Conditions – Food Safety

2022 DEC 05 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Foodborne Diseases and Conditions - Food Safety. According to news reporting originating from Wuhan, People’s Republic of China, by NewsRx editors, the research stated, “Food safety liability insurance is a way to alleviate financial crisis such as stock price crash when food safety incident occurred. This study evaluates the causal effects of compulsory food safety liability insurance on stock price crash risk.”

Financial supporters for this research include National Natural Science Foundation of China (NSFC), Fundamental Research Funds for the Central Universities.

Our news editors obtained a quote from the research from the Huazhong University of Science and Technology, “Results from our difference-in-differences estimator show that firms enforced compulsory food liability insurance are less likely to suffer crash risk. We also find that the negative effects of compulsory food liability insurance on crash risk are mediated through constraining overinvestment to enforced firms.”

According to the news editors, the research concluded: “Our study suggests the importance of cooperation between government legislation and insurance agencies oversight in food safety protection.”

This research has been peer-reviewed.

For more information on this research see: The Impacts of Compulsory Food Liability Insurance Policy On Stock Price Crash Risk: Evidence From Chinese Food Industry. Finance Research Letters, 2022;50. Finance Research Letters can be contacted at: Academic Press Inc Elsevier Science, 525 B St, Ste 1900, San Diego, CA 92101-4495, USA. (Elsevier - www.elsevier.com; Finance Research Letters - http://www.journals.elsevier.com/finance-research-letters/)

The news editors report that additional information may be obtained by contacting Xiaowen Liu, Huazhong University of Science and Technology, College of Public Administration, Wuhan, People’s Republic of China.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.frl.2022.103232. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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