Research On The Relationship Between Environmental Uncertainty,Institutional Investor's Shareholding And Stock Price Crash Risk

Compared with the western countries,China's capital market started late,so it also faces the problems of immature development and imperfect mechanisms.The stock price surge is also one of the prominent features of China's stock market.The stock price crash not only poses a huge threat to the healthy development of the capital market,but also causes a major blow to securities investors,causing huge losses.As a result,investors have gradually increased their focus on the risk of stock price crashes,and their influence on investment behaviors;scholars have also paid more attention to the risk of stock price collapse and expanded research on this aspect.From the existing research,the factors affecting the stock price crash are mainly concentrated on the internal factors of the company,such as management overconfidence,CEO and CFO gender,characteristics of independent directors,shareholding ratio of major shareholders,internal control,etc.In terms of external factors affecting the risk of stock price collapse,scholars have conducted research on analysts,institutional investors and external auditors.Since the beginning of the 21st century,the development of Chinese institutional investors has received strong support from relevant departments such as the government and has begun a period of rapid development.The size and variety of institutional investors are increasing,and their roles and influences in corporate governance and capital markets are gradually increasing.Since institutional investors have many advantages that individual investors do not have,their role in the company's management and the impact on stock prices and other investors in the capital market are gradually being valued and researched.However,whether institutional investors can actively participate in corporate governance is a constant controversy among scholars.Some scholars believe that institutional investors can use their advantages in professional analysis and shareholding ratio to effectively supervise corporate management.However,other scholars believe that institutional investors have a short-term trading tendency and expect short-term holdings to be profitable.Not only do they lack supervisory motivation,but they also collude with management,which harms the interests of other investors.Therefore,this article starts with institutional investors and explores what role institutional investors have played and how it affects the stock price crash risk.The progress and development of all things are inseparable from the external environment,especially enterprises.Changes in the environment of a business premises can have a significant impact on its own business status,business conditions and performance.For example,changes in customers,suppliers,competitors,and external regulators can have a unique impact on the business.Therefore,we should pay enough attention to changes in the external environment of the enterprise.From this perspective,this paper takes the uncertainty of the external micro-environment of the enterprise into the scope of research,and analyzes how the environmental uncertainty affects the relationship between institutional investors and stock price collapse risks.According to the data of A-share listed companies from 2007 to 2016,this paper finds that:(1)Institutional investors holding shares significantly increased the risk of stock price crash.(2)The higher the degree of environmental uncertainty,the greater the risk of a stock price crash.(3)Environmental uncertainty increases the impact of institutional investors' shareholdings on the risk of stock price collapse.The content of this article includes the following six parts:The first part is an introduction.Firstly,the research background and significance of this paper are mainly expounded.Secondly,the research objectives,research contents and structure of the article are briefly introduced,and the research methods and possible innovations used in this paper are pointed out.The second part of the literature review.This section reviews the existing research results related to stock price crash,institutional investors and environmental uncertainty at home and abroad,and reviews and evaluates this.And based on the existing literature,the research viewpoint and direction of this paper are proposed.The third part is theoretical analysis and research hypothesis.This part first defines the main concepts related to this paper,and analyzes the research content of the article through information asymmetry theory,principal-agent theory and corporate governance theory,and then puts forward the research hypothesis of this paper.The fourth part studies the design.This section first describes the sample selection and data source,then defines the variables,and finally designs the corresponding test model for each hypothesis.The fifth part is an empirical analysis.The research sample of this paper is the data of Shanghai-Shenzhen A-share listed companies in 2007-2016.Firstly,the descriptive statistical analysis and correlation analysis of the sample are carried out.Then the three hypotheses of this paper are tested by regression analysis.Finally,the results of the study were further verified by the robustness test.The sixth part of the research conclusions and counter measures.This section summarizes the research content of the full text and draws the conclusions of this paper.From the perspectives of institutional investors,enterprises and individual investors,the corresponding countermeasures and suggestions are put forward.Finally,the research shortages and future research directions of this paper are pointed out.