Study On The Risk Of Stock Price Crash Of Listed Companies Based On ESG Evaluation System

China's stock market has developed rapidly since its establishment.However,due to the lack of supervision system and the lag of market information environment,the stock price collapse of listed companies has occurred frequently in China's stock market due to various reasons.In 2018,a number of "Black Swan" incidents occurred in the pharmaceutical sector,affected the economic efficiency of the securities market and even endangered the healthy development of the real economy.Therefore,how to predict the stock price collapse of Listed Companies in securities investment decision-making has become an increasingly concerned topic for relevant industry researchers.This paper chooses the important indicators of ESG evaluation system environment,responsibility and corporate governance as explanatory variables,and uses weekly return volatility as explanatory variable after referring to many literatures to measure the risk of stock price crash of listed companies,and makes relevant assumptions.Through the empirical analysis of the data of Listed Companies in the pharmaceutical industry from 2010 to 2017,we can draw the conclusion that the ESG evaluation system is related to the risk of stock price crash,that is,the performance of ESG evaluation of enterprises will directly affect the probability of occurrence of incidental risk events,and then affect the risk of stock price crash,and select the "Black Swan" incident of Huahai Pharmaceutical Industry as a case to testify.Finally,according to the conclusion of this paper,because the ESG indicators of the evaluation enterprise have important reference value for investors to predict the risk of stock price collapse in listed companies,so that the investment decisions of listed companies have important reference value,so the policy suggestions for the construction of ESG evaluation system and the application of ESG investment concept are given.The research shows that: firstly,the disclosure of corporate environmental responsibility is negatively correlated with the risk of stock crash,that is,the higher the level and quality of environmental information disclosure,the lower the possibility of stock price crash caused by the disclosure of hidden negative information;secondly,the level of corporate social responsibility is negatively correlated with the risk of stock price crash,that is,the company has stronger social responsibility.Sense,correspondingly,it will also greatly reduce the possibility of negative information in enterprises,so as to keep enterprises away from stock price crash events.Third,the higher the concentration of equity,the higher the consistency of long-term interests between major shareholders and enterprises,the lower the risk of stock price crash caused by sudden negative events.Finally,the better the corporate governance effect,the financial indicators such as profitability and solvency.The higher the risk,the lower the risk of stock price crash.