investigate how private placements affect asset mispricing. The findings from the empirical study demonstrate that private … placements by listed companies substantially impact the level of asset mispricing. This conclusion holds when controlling for … mispricing. Further analysis shows that asset mispricing is more pronounced in non-state-owned firms, firms with lower external …

correlated with stock mispricing levels, and stock price crash risk. Mechanism tests reveal that favorable rumors about industry … leaders have industry spillover effects. The effect of rumors on mispricing levels and stock price crash risk are more …