Abstract
<title>Abstract</title> <p> <bold>Purpose:</bold> In response to significant increase in international interest for improving information quality and capital market stability with the hope of attracting foreign investment, gain the confidence of local investors especially in time of financial disasters, and stock volatility. This study first, explores whether or not an Egyptian company's ownership patterns are associated with stock price crash collapse. Then check whether audit delay play as a market indicator on this relation. <bold>Design/Methodology</bold> <bold>/approach:</bold> To attain these objectives, we adopted a quantitative approach by analyzing the content of sample of 475 observations for95 non-financial firms listed on the Egyptian Stock Exchange's annual reports from 2020 to 2024. proposed models and hypotheses were analyzed using ordinary least square multiple regression model after applying Hausman test. <bold>Key Findings:</bold> We found that higher managerial ownership and prolonged audit delay are associated with higher stock price tail risk, unlike institutional ownership and family ownership mitigate stock price crash risk. Furthermore, association is stronger since ARL interacted with each ownership patterns than before interaction. Moreover, the ARL interaction weakens the positive relation between managerial ownership and stock price collapse, finally ARL interaction creates significant and negative impact for both government ownership and foreign ownership on the SPCR that were insignificant before the interaction. The results are supported by two different proxies of crash risk (negative coefficient of skewness and down to up volatility). <bold>Originality/Value:</bold> we expand our understanding of active governance by examining the moderating role of ARL on the relation between our 5 ownership patterns on tail risk. this relationship is important not only for stockholders, but also for regulatory bodies, who will use this study for future improvements to prevent the crashes and protect the investor wealth. </p>