Research On The Relationship Between Shareholding Ratio Of Large Shareholders And Risk Of Stock Price Collapse In Listed Companies

Since the establishment of China's stock market,it has been more than 20 years old.Compared to those capital markets of developed countries with hundreds of years of history,there are still many systems that are not perfect.An important manifestation is that our country's stock market often rises and falls sharply.The impact of the stock price crash risk has become a hot research field to maintain financial stability.This article starts from the perspective of the proportion of major shareholders holding shares,and studies whether major shareholders have more incentive to supervise management and reduce self-interest behavior of management as large shareholders use their own shares.Discourse rights transfer the resources of listed companies and erode the interests of small and medium shareholders.We use the data of listed companies in China from 2007 to 2015 after the equity share reform has basically been completed as a sample,and use empirical analysis of the shareholding ratio of major shareholders based on corporate control rights theory,principal-agent theory,and information asymmetry theory to study relationship between major shareholders and listed company's share price crash risk.Empirical research shows that the higher the proportion of large shareholders of listed companies in China,the greater the risk of the collapse of the company's stock price is significantly reduced,and the information asymmetry in the negative correlation between the ratio of large shareholders and the stock price collapse risk in the group with higher information asymmetry.This is even worse in the lower-level groups.According to the grouping test of the nature of property rights and corporate governance structure,the governance effects of major shareholders on listed companies are mainly manifested as synergies of interests.The research in this article is an enrichment and development of the influencing factors of the stock price crash risk.It has a further understanding of the role of major shareholders of listed companies in China's stock market,as well as how to effectively reduce the stock price crash risk and maintain the smooth and healthy development of the stock market.