The Relationship Between Opinion Divergence And GEM Stock Price Crash From The Perspective Of Information Announcing

The stock market crash is a huge risk of China's financial security and economic development. Nearly 40 years of reform and opening up, China economic growth rate is on the top of the world, but the frequency of stock market crash is also the first in the global stock markets. Under the background of the structural adjustment of our economy and the accumulating financial risk and vulnerability, stock market crashes has received the regulators and academic attention. How to reduce the stock price crash risk is a hot issue in the research of the current capital market. This research has important theoretical and practical significance. Based on the information disclosure quality, this paper discusses the mechanism of the differences of opinions on the stock market crash, and puts forward recommendations to reduce the risk of stock price crash.Based on the theoretical framework of Hong and Stein (2003) auction mechanism model, this paper introduced the mechanism of investor opinion divergence and stock price crash of GEM. Furthermore, this paper studied the relationship between the stock price crash and investor opinion divergence from the perspective of information announcing.400 stocks listed on GEM between 2010 and 2014 were sampled for this research. This paper calculated and analyzed the index of stock price crash risk, opinion divergence, and information announcing quality. A panel regression model was constructed to empirically test the relationship between the stock price crash and investor opinion divergence from the perspective of information announcing. Third conclusion were arrived by the research. First, Investors opinion divergence degree of GEM in China was high. The stock price crash risk was abnormally big, especially at the beginning of listings. Second, Investors disagreements and the stock price crash risk of GEM in China were positively correlated. The greater the degree of investor disagreement, the greater the stock price crash risk. Third, high quality of information disclosure of listing corporation could reduce the relationship between the investors' opinion divergence and the stock price crash risk. Information disclosure would reduce investors'opinion divergence on stock value estimation, thus reducing the risk of stock price crash. Based on the results of theoretical analysis and empirical test, the policy suggestions were put forward from the improvement of information disclosure system, the increased attention of financial intermediaries, and the improvement of investor education.