Corporate Social Responsibility,Security Analyst Tracking And Stock Price Crash Risk

The stock price crash risk refers to the probability that the stock price will fall sharply.Compared with the capital market in developed countries,the phenomenon of stock price crash happens more common in China.The stock price crash may cause the mismatch of economic resources,and thus do harm to the smooth operation and development of the capital market.Therefore,how to prevent and reduce the risk of stock price crash has become a hot topic in the theoretical and practical circles in recent years.Since the 19th congress,the government has paid more attention to environmental protection,economic sustainability and high-quality development.The corporate social responsibility(CSR)has become an important factor in market valuation.But does the CSR have an impact on the stock price crash risk?Is it positive or negative?In addition,as an active participant in the capital market,will the security analysts over-optimistically estimate the value of the company due to the CSR and increase the probability of the stock crash risk?In order to answer these questions,this study explores the relationship between the fulfillment of corporate social responsibility and the activity of corporate social responsibility activities and the number of analysts tracking,the fulfillment of corporate social responsibility and the impact of corporate social responsibility activity on the stock price collapse risk,and the role of security analysts on the relationship between corporate social responsibility and the risk of stock price crash.In further research,we tracked the impact mechanism between corporate social responsibility and stock price crash risk from the perspective of analyst optimistic bias and corporate earnings management.This study takes all the A-share(not include financial companies)companies as research samples from Shanghai and Shenzhen Stock Exchange.Through empirical research,we found that:(1)analysts tend to follow companies which have positive performance of Corporate social responsibility;(2)the fulfillment of corporate social responsibility is negatively related to the risk of stock price crash,that is,the performance of social responsibility will often reduce the risk of its stock price crash relative to companies that fail to fulfill corporate social responsibility;(3)for companies that fulfill corporate social responsibility,corporate social responsibility activity is positively correlated with stock price crash risk.Combined with the above conclusions,it can be inferred that there is a likely ’tick’ relationship between corporate social responsibility and stock price crash risk.For companies fulfilling corporate social responsibility,analyst tracking has intensified the risk of its share price crash risk.And for its influence mechanism,this tudy mainly discusses from the perspective of analyst optimism bias and corporate real earnings management.The empirical results show that the optimistic bias of analysts and the management’s real earnings management behavior brought about by the tracking pressure have increased the risk of stock price crash to some extent.