The Rise of Machines: Algorithmic Trading and Stock Price Crash Risk

Anwer S. Ahmed, Yiwen Li, Andrew McMartin, Nina Xu, Texas A, M University, College Station, Villanova University, University of Delaware, University of Connecticut

Journal of Accounting, Auditing & Finance

Published online on December 04, 2025

Abstract

Journal of Accounting, Auditing & Finance, Ahead of Print.
As algorithmic trading (AT) has become a dominant component in financial markets, it is important to understand its benefits and costs. We argue that AT enhances managers’ bad news hoarding by reducing monitoring from fundamental investors and ...