Securities Regulation,the Nature Of Ultimate Controller And The Stock Price Crash Risk

Under the background of rapid development of securities market in China,theregulation of securities market has serious deficiencies,leading to illegal events and frequent stock price crash of the listed company,seriously infringe on the rights and interests of investors.Some scholars pointed out that when the law cannot fully protect the rights and interests of investors,securities regulators initiative supervision help make up for the shortage of the legislation.However,the deficiencies such as lagged securities supervision and lack of regulatory independence exist,which do not really play the role of protection of rights and interests of investors.In order to achieve the goal of "cultivating an open,transparent and healthy developing capital markets" put forward on the "13th Five-Year Plan",curb illegal behavior in the securities markets,inhibit irrational boom and collapse,effective protection of the investors' rights and interests has become the top priority.Meanwhile,"13th Five-Year Plan" also proposed the requirements of "deepening the reform of financial supervision system",pointing out the direction for the reform of our country's securities regulation.This article takes this opportunity to try to explore the present stage of securities regulation in the stability of the securities market and the kind of role in protecting investors.In this paper,we use the index of stock price crash risk to measure the stability of the securities market and investor protection,during 2003-2016 in China's securities market.We examine the securities regulation impact on stock price crash risk of listed companies,and further study the impact of the nature of ultimate controller.We draw the following conclusions:(1)Proximity to the securities regulators will decrease stock price crash risk,which is less pronounced in the state-owned properties of the samples.(2)Regulatory inquiries can significantly reduce stock price crash risk over the next year,which has a lower significant correlation relationship in state-owned listed companies.(3)Regulatory penalties will significantly improve the share price crash risk of listed companies,but will not increase the risk of future stock price crash.This positive correlation is less significant in state-owned listed companies.At the same time,the higher the timeliness of the regulatory penalties,the lower the stock price crash risk.(4)In general,our country's securities regulations do have effectiveness,but the listed company of state-owned listed companies can significantly reduce theeffectiveness of regulatory activities.The article researches the relationship between securities regulation and the stock price crash risk firstly,and examines the impact of the nature of ultimate controller,which is the innovation.The research conclusions of this paper are not only contribute to the economic consequences relating to securities supervision and the factors relationg to the stock price crash risk,but also help improve the efficiency and effectiveness of securities regulators.