| In recent years,the capital market is not healthy,stock price crash phenomenon often occurs,which greatly damaged the interests of shareholders,shaken the investors' confidence,is not conducive to the healthy and stable development of the capital market.The family members have a natural preference for the control right.Ultimate controlling shareholder gains the excess control right through the Pyramid structure,cross shareholdings,differences of shares,participation in management,etc.What is the effect of the excess control over the nominal control? Does the excess control increase or reduce the of stock price crash risk? This study will take the family firms for example to study the relationship between the excess control right and the stock price crash risk.Through the empirical research on the data of 890 A-share listed family enterprises from year 2011 to 2015,this paper obtains the following conclusions: firstly,the board of directors' excess control right and the stock price crash risk is positively correlated,but the empirical results are insignificant.May be due to the small sample size of this study and the conclusion has not been proved.Secondly,the family board seat occupancy rate is negatively correlated with the stock price crash risk.The family directors have the motivation to properly run the company,which can reduce the opportunism of management,alleviate the agency problem,so as to reduce the stock price crash risk.Thirdly,the board of directors' excess control and the stock price crash risk are significantly negatively correlated.The board of directors' excess control reflects the interests synergy effect,enhances the consistency of the company's strategic decision,help to alleviate the agency problem,thus reducing the stock price crash risk.Fourth,the total excess control of the family and the stock price crash risk are significantly negative correlation.The propping effect is greater than the tunneling effect.The total excess control right reflects the support effect,family will be diligent to manage,to increase the enterprise value,improve the quality of information disclosure,thereby reducing the stock price crash risk.This paper innovatively divides the excess control right into two parts: the board of directors and the shareholders' meeting.Also this paper uses the agency theory,asymmetric information theory to analyze the mechanism between the excess control right and the stock price crash risk,and use empirical test to check the relationship between the above two.This study enriches the research on relationship between excess control right and stock price crash risk.The results of the study can guide the family firms to allocate control more properly,thus reducing the stock price crash risk. |
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