Institutional Investors,Ownership Concentration And Stock Price Crash Risk

With the rapid development of economic,China's capital market has become an important part of the world's capital chain and has become an important driving force in the promotion of global economic development in many areas.However,although China's stock market has experienced more than 20 years of development,there are still many imperfections,the most important manifestation of which is the collapse of the stock market where there is no sign of share price.The stock price crash risk caused by the stock price crash has seriously affected the normal operation of the capital market and even jeopardized the healthy development of the real economy.Therefore,how to prevent and resolve the risk of stock price collapse has not only attracted the attention of investors and regulators,but also has become a hot topic of academic research.As a participant in the capital market,institutional investors have a profound influence on the direction of the capital market.At the same time,as compared with the developed capital markets in the west,China's shareholding structure presents a relatively concentrated and prominent feature.Therefore,the research of the influence of institutional investors and ownership concentration on the stock price crash risk is of great importance.This paper selects the data Shanghai and Shenzhen A-share listed companies in 2011-2016 to study the relationship among institutional investors,ownership concentration and stock price crash risk.The research results of this paper show that the shareholding of institutional investors in China has increased the stock market crash risk of listed companies.Further,based on whether there is a close commercial relationship between institutional investors and listed companies,institutional investors are divided into independent institutional investors and gray institutional investors.The empirical results show that there is a significant positive correlation between independent institutional investors and the stock price crash risk.There is also a positive correlation between grey institutional investors and stock price crash risk,but the results are not significant.At the same time,the research results also show that China's relatively concentrated equity institution significantly mitigates the risk of share price crashes.After introducing the adjustment factor of ownership concentration,the positive correlation between independent institutional investors and stock price crash risk is significantly weakened,but this weakening effect is not significant for grey institutional investors.The research conclusion of this paper has a certain theoretical value.At the same time,it also has certain reference value for the regulators to formulate corresponding policies.In theory,the article studies the role of institutional investors and ownership concentration in corporate governance from the perspective of the risk of stock price collapse,and enriches the economic consequences of institutional investors and equity structure in China's capital market.At the same time,the conclusions of this paper also have important practical significance.First of all,this article studies the relationship between institutional investors and stock price crash risk based on low-mature capital market data,which is inconsistent with the conclusions drawn in the developed capital markets,and thus for institutional investors in our stocks.Whether the market plays a role as a stabilizer provides direct evidence.Secondly,this paper studies the impact of equity structure on the risk of stock price crash.The conclusion of the study shows that the centralized shareholding structure can improve the governance of listed companies and help the entire stock market to stabilize.Operational,centralized equity structure actually plays a role of investor protection in regions where the institutional environment is weak.Finally,the research conclusions of the article have certain reference value for the supervisor to formulate corresponding policies.The research conclusions indicate that the capital market regulator should Strengthen the education and guidance of institutional investors and help them establish the concept of long-term investment.At the same time,we should further improve the company's shareholding structure and improve corporate governance and governance capabilities.