Investigating the factors that contribute to stock market bubbles and subsequent crashes.

The research paper aims to investigate the factors that contribute to stock market bubbles and subsequent crashes. The study will analyze the macroeconomic factors, market micro-structure factors, and behavioral factors that affect the pattern of stock price fluctuations. The study will differentiate between the rational and irrational components of behavioral factors to provide more insight into financial crises. The research will also categorize crashes into different patterns based on three dimensions: cumulative decline, speed of decline, and duration of the crash. The study will use innovative measures and comprehensive analyses to identify the most influential factors explaining the magnitude and duration of the crash. The study will also review and synthesize empirical research on the antecedents of stock price crash risk to ascertain the macro-, meso-, and micro-level determinants contributing to stock price crashes. The research will identify priority areas for future research and provide a multilevel framework to categorize the determinants of stock price crashes into micro-, meso-, and macro-level factors. The study will provide strong and robust evidence that conservatism in financial reporting reliably predicts stock price crash risk. The research will also investigate the effect of financial risks on the stock market crash occurrence. The study will use the E-GARCH approach to explore the influence of investor sentiment on the return rate of the stock market. The research will assist market participants in making more rational investment decisions based on market laws and help regulators in their roles of supervision and policy making.