Industry Competitiveness,Corporate Strategy And Stock Price Crash Risk

The phenomenon of stock price collapse refers to the sharp decline of stock price in a short period of time,which is different from that of market index.The risk of stock price collapse is a description of the possibility of a stock price collapse.Jin and Myers put forward the hypothesis of information hiding,which provides a theoretical basis for the study of the risk of stock price crash.According to the information hiding hypothesis and the summary of related research,we can find that the risk of stock price crash is mainly affected by two aspects: one is the principal-agent problem of company managers,the other is the investor's perception of stock price based on company information.This paper chooses the investor's cognitive perspective to study the risk of stock price crash.According to the investor's cognitive theory,stock price is the investor's overall understanding of the market value of the stock based on company information.Therefore,the rapid and sharp rise in stock prices reflects investors' cognitive judgment that companies have higher investment value for the industry.This paper defines the relative investment value of the company to the industry as the industry competitiveness of the company in the stock market.The competitiveness of the company's stock market industry reflects investors' overall understanding of the relative investment value of the company to the industry.The emergence of stock price crash shows that there are common cognitive errors in investors' perception of the company's relative investment value.According to management theory,investors' perception of the company's competitive strategy can reflect investors' perception of the company's overall operating conditions.The company's competitive strategy can be divided into cost-leading strategy and differentiation strategy.Because of the different core driving forces of the two competitive strategies,investors have different cognitive difficulties in understanding the two competitive strategies.This makes the company's different competitive strategy choices,which will affect the relationship between the competitiveness of the company's stock market industry and the risk of stock price crash.Therefore,this paper uses multiple regression analysis to construct a multiple regression model to test the relationship between the industry competitiveness of the company's stock market and the risk of stock price crash,as well as the impact of the choice of the company'scompetitive strategy on the relationship between them.Based on theoretical analysis and empirical research,this paper finds that as a whole,there is a negative correlation between the competitiveness of the industry and the risk of stock price crash.Based on the division of the company by the company's competitive strategy,the industry competitiveness of the company with differentiated strategy is positively correlated with the risk of stock price crash.On this basis,based on the test of the intermediary effect of investors' perceived risk,this paper further verifies the rationality of the impact path of stock price crash risk.