Real Earnings Management, Short Selling And Stock Price Crash Risk

Stock price rises and falls is a phenomenon in the global financial commonplace, especially caused by the stock price plummeted crash will affect the stable development of the capital market to the healthy growth of financial markets and capital providers bring great wealth to combat and destruction, thus attracted universal attention regulatory authorities, providers of finance and academia. If you can identify the factors that affect stock price crash and its formation mechanism, through internal and external prevention and supervision, can effectively reduce the number of stock price crash, to ensure a smooth development of financial markets.Domestic and foreign scholars study found that corporate level financial information, non-financial information has a crucial impact on the stock price crash, financial, non-financial information in the form varied, both research scholars generally believed that the company’s management to take a direct impact on real earnings manipulation stock price crash risk. However, in our particular context, real earnings management of listed companies on the stock price crash risk level the company has a kind of impact? Borrowing evidence of share listed companies to carry out empirical analysis results can be drawn. Also, because of China’s capital market environment and special institutional background, resulting in China’s financial system is imperfect, short selling mechanism development is relatively slow, the interests of the investor protection system is not perfect. Inside the capital market often appears, manipulation, fraud and other transactions, resulting in external policy effects of short selling on the stock price crash risk weakening or strengthening still open to discussion. Thus, the relationship between the introduction of short selling regulatory policy and stock price crash risk is necessary to continue to explore.On the basis of both theoretical and literature review on the Shanghai and Shenzhen listed companies 2010--2014 financial data, stock market transactions as a sample, in accordance with established principles of the 5730 final screening observation variable, fixed and random effects of earnings management model study’s stock price crash risk, while the introduction of short selling system whether the relationship between earnings management and the weakening of the stock price crash risk. Empirical Study found that:(1) real earnings management and stock price crash risk was significantly positive fluctuations, the higher the level of real earnings management to manipulate, the more likely to stimulate the stock price crash risk company level; (2) short selling system significantly weakened real positive correlation between earnings management and stock price crash risk, the opening margin can weaken the influence of the target company’s share price collapse of earnings management risk; not open margin of the target company, its impact on the real level of earnings management stock price crash risk more high.The specific contents of the thesis include:The first chapter is introduction, draw out the necessity of research on the problem, research methods, introduces the related concept definition; The second chapter discusses the theory underlying this study and literature review, carefully combing the theory and literature; The third chapter is interpretation hypothesis and research design of this article, the paper describes the data sources, the study variables, models, etc.; The fourth chapter is empirical analysis in this paper, specifically contains descriptive statistics, regression and robust test result interpretation; Chapter summary conclusions of this study and future research prospect.Innovation of this study is from the perspective of the quality of accounting information of the relationship between real earnings management and stock price crash risk, combined with our special regulatory background, analyze the impact of the above-described short-selling policy of their relationship.