Venture Capital Holdings And Stock Crash Risk

Compared with western countries, the venture capital of China starts relatively late, developed in the 1980 s. But with the development of economy and the support government policy, the venture capital plays a more and more important role in China’s capital market. Because of Chinese special system background and economic environment, coupled with weak capital market regulation, market speculative atmosphere, the venture capital operation system is not perfect. In recent years, the phenomenon of excessive profits caused the attention of people in venture capital industry. So studying the venture capital mechanism of action is very valuable. In recent years, the stock price crash risk has also caused wide attention. However, the research is not much, especially the study of the Chinese market. In view of this, this paper is expected to connect the two current hot topics. From the angle of venture capital, this paper studied its relationship with stock price crash risk.This paper used 1322 companies’ data as the research data basement. The study summarized and absorbed domestic and foreign related research results. On the basis of using descriptive statistics, regression analysis and other empirical research methods, researching the relationship of venture capital and the stock price crash risk. The venture capital is divided into four dimensional influences. The study found that:(1)For our country’s companies, there is a remarkable positive relationship between venture capital and the crash risk.(2) Further research shows that venture capital joint characteristic has a significant positive influence on the stock price crash risk.(3) The government, control, and experience characteristics were not significantly impact on stock prices crash risk. Research content not only is of great significance to the theory of financial innovation and development, but also for strengthening market supervision and preventing the stock market crash.