Asset Impairment Provision And Stock Price Crash Risk

Following its farce of "scallops running away" in 2014,zhangzidao group,a listed company,staged the farce of "scallops dead" once again this year.In three months,the company announced a loss of 500 million yuan to 700 million yuan due to the provision of large asset impairment,from the expected profit of 100 million yuan in the previous performance forecast to three months later.The company's stock price fell 46.83 percent after the announcement,and the former "haihai dazhai" is facing the risk of a crash.The risk of stock price crash increases the investment risk of investors,which seriously endangers the healthy development of the capital market.As for the influencing factors of stock price crash risk,scholars mainly studied from internal factors and external factors.More in-depth,scholars have studied the impact of different corporate behaviors on the risk of stock price crash,but no one has studied the impact of asset impairment provision provision on the risk of stock price crash.In fact,due to the needs of the earnings management and management of the existence of discretion,asset impairment provision is not sufficient or timing plan lead to the amount of assets impairment of abnormal fluctuations problems often exist,however,whether they be misleading investors in capital market of the company's financial situation judgment,causing stock price crash risk? Can companies strengthen internal control effectively prevent this from happening? This paper intends to make an in-depth study of these issues.Based on this,this paper took the annual reports of a-share listed companies in Shanghai and shenzhen from 2012 to 2017 as the research object,and empirically tested the influence of asset impairment provision adequacy and volatility on stock price crash risk.The study found that the more fully the impairment provision provision of listed companies,the lower the risk of stock price crash,and the higher the volatility of the impairment provision provision,the higher the risk of stock price crash.Further research shows that for companies with higher internal control quality,the adequacy and volatility of asset impairment provision have no significant impact on the stock price crash risk.On the contrary,it is significant.The conclusion of this paper reveals the relationship between the adequacy,volatility and stock price crash risk of asset impairment provision,and proves that internal control plays a significant role in ensuring the adequacy and curbing the volatility of asset impairment provision.The research conclusion of this paper has certain reference significance for investors,listed companies,CSRC and other relevant management departments.Investors should pay attention to whether the asset impairment provision provision of listed companies is sufficient,whether the amount of withdrawal is relatively volatile,and identify whether the asset condition disclosed by listed companies is true,so as to avoid being misled by false information.Listed companies should reasonably calculate and withdraw the impairment of large assets with signs of impairment,ensure that the asset impairment is sufficient,authentic and reliable,strengthen the construction of internal control,and ensure the healthy operation of internal control,so as to reduce the information asymmetry between the company and investors.The CSRC and other regulatory authorities should focus on the companies with poor internal control quality,strengthen the supervision and review of the asset impairment information disclosed by them,avoid misleading investors' choices with false information and disturb the stability of the capital market.