Stock Price Crash Risk In Group

China's capital market system is not perfect,the Shanghai Composite Index several times experiences a short period of decline after the peak in the market,GEM shares continued to fall,and the capital market regularity changes,in which the bull market capping and bear market bottomed rebound often appear,causing the liquidity significantly reduce.Stock prices fell in a large area,instability in the stock market,phenomenon that the organization got together to a group for heating each other is widespread.In recent years,China has experienced a large share price collapse of 5 times.In academia aspect,the stock price crash is mainly due to some purpose of management,concealing bad news other to stakeholders.Because the bad news accumulated to a certain extent when it is difficult to hide,concentrated bad news bursts make stock prices jumped in the short period.Taking the enterprise group with more market influence as an example,based on the previous literatures of the internal capital market and the risk of stock price collapse,this paper chooses the observation value between 2005-2015 years to analyze the risk of stock price collapse.Empirical research findings:(1)Overall,group organizational structure is the inevitable trend of enterprise development and growth.Comparing enterprise groups to independent enterprises,corporate group has the internal capital market to provide abundant resources,strengthening internal supervision,internal communication platform,reducing information asymmetry,and internal talent market,improving the cost of management to conceal bad news,which make group enterprise stock price collapse risk lower.(2)China's state-owned enterprise groups have more public characteristics,the management system is different from private enterprises,the government departments pay too much attention to the external indicators of economic development,making the management excessive investment,and excessive investment exacerbate stock price collapse risk higher.The enterprise Group whose final control person is the Government department,in the long-term formation process,has the multi-level agency relations,causes the information transmission difficulty,the internal control difficulty increases,the supervision mechanism efficiency is low.At the same time,unique market competitive advantages,it is difficult to form compensation constraints.These state-owned mechanisms mitigate the beneficial impact of group control on the risk of stock price collapse.(3)Analysts from outside the company can effectively convey the company's information to external investors,it can reduce the accumulation of bad news,which may cause the company's stock price collapse risk.