Managerial short-termism, firm-level financial instability, and socioeconomic determinants of health: evidence from Chinese listed firms.

Large stock price crashes represent a severe form of firm-level financial instability. Unlike ordinary price fluctuations, crash events involve abrupt and substantial declines in stock prices that can erase a large portion of firm value within a short period. Such extreme downside events often emerge after prolonged periods of apparently stable performance and low volatility, during which firm-specific risks accumulate gradually. In many cases, the buildup of negative information becomes visible only after the crash occurs, suggesting that unfavorable news was not incorporated into prices in a timely manner. Beyond their financial implications, episodes of firm-level financial instability may also generate broader socioeconomic consequences that are relevant for public health. Sudden declines in firm value and financial distress can affect employment stability, wage growth, and household economic security. From a health economics perspective, these economic disruptions may be related to socioeconomic conditions associated with health outcomes by increasing psychological stress, reducing access to healthcare services, and weakening household financial resilience. A growing body of health economics research documents that economic instability and financial crises are associated with adverse health outcomes. Prior studies show that economic downturns can increase psychological distress, mental health disorders, and mortality risks (, , ). Financial shocks may also affect healthcare utilization and long-term wellbeing through income instability and reduced social protection (). These findings suggest that financial instability may represent an important pathway through which economic conditions influence public health outcomes.