CEO's Overseas Background?Internal Control And Stock Price Crash Risk

The stock market stability and good operation is to ensure that the national economic development,the interests of investors to protect the necessary conditions,but for a long time,stock prices plummeted,the stock market turmoil has occurred,China's stock market since 2008 has been in a continuous ups and downs,Stock stock crash events continue to occur.Therefore,it is an important problem to study the influencing factors of the risk of stock price collapse and establish the mechanism of preventing stock price crash.At present,most of the research on the factors influencing the risk of stock price collapse is mainly in the aspects of stock yield,stock liquidity,accounting conservatism,institutional investors,analyst bias,auditor's expertise,corporate information transparency.According to the formation mechanism of the risk of stock price collapse,management opportunism tends to hide the company's "bad news",when the "bad news" accumulated too much will be exposed at the same time,leading to rapid decline in stock prices so as to collapse.From the existing research we can see that the internal control of the company can effectively reduce the motivations and opportunities of management opportunism.Therefore,the paper studies the influence of the effectiveness of internal control on the risk of stock price crash from the perspective of internal control of the company and joins the experience of overseas experience and property rights Variables,respectively,to study the impact of both on the relationship between internal control and stock price risk.On the basis of reviewing the literature on the background characteristics,internal control and stock price crash,this paper combines the principal-agent theory,the high-level management theory and the information asymmetry theory,the relationship between the internal control and the risk of stock price collapse,CEO overseas experience and the nature of property rights,respectively,the internal control and stock price risk of the relationship between the theoretical analysis,and put forward the corresponding assumptions.Then the following conclusions can be drawn according to the hypothesis:(1)The higher the internal control of the company,the lower the risk of the stock price collapse,that is,the company's good internal control can effectively curb the risk of stock price collapse;(2)CEO overseas company,The control effect on the risk of stock price collapse weakened,this conclusion in the whole sample group,the state-owned listed company sample group and non-state-owned listed companies are set up in the sample group;(3)compared with the state-owned listed companies,non-state listed companies in the internal control The risk of stock price collapse is stronger,and this conclusion is true in the sample group,the sample group with the overseas experience,and the sample group without overseas experience.Finally,the robustness test is performed using the alternative variables of internal control,and the results are in agreement with the empirical results.The paper studies the influence of the two on the risk of stock price crash from the background of executive background and internal control.It complements the content of high-level management theory and information asymmetry,and at the same time widens the risk factors of stock price collapse to a certain extent Of the scope for the smooth stock market,the risk of controlling the stock price crash measures to provide a new direction.