Research On The Impact Of Information Disclosure Quality On Stock Price Crash Risk

Stock price crash is the focus of common concern of listed companies,investors and academia.It refers to the phenomenon that the stock market index or stock price falls sharply without any warning.In the current social economy,the stock price collapse will seriously threaten the healthy operation of the company,damage the wealth of shareholders,and affect the stability of the stock market in China.Compared with the mature western countries,China's capital market started late,the relevant systems and regulations are still not perfect,the stock market fluctuates sharply,and stock price crashes occur frequently,which hinders the sound development of China's securities market.At present,most scholars mainly believe that the information asymmetry between listed companies and investors is an important reason for the stock price crash.For their own benefit,the management of listed companies tends to disclose the good news and hide the bad news.Once the bad news is released,investors will sell a large number of company shares,leading to the stock price crash.Therefore,information disclosure will have an important impact on stock price volatility.Whether improving the quality of information disclosure to alleviate information asymmetry in China's stock market can reduce the risk of stock price crash deserves further study.At the same time,as the information intermediary in the stock market,securities analysts are the media for effective communication between internal enterprises and external information users.They can screen the information disclosed by listed companies,extract useful information,and use their own professional knowledge to analyze and transmit it to investors,thus providing an effective way for the quality of information disclosure of listed companies to affect the risk of stock price crash.Therefore,it is necessary to explore the role of analyst coverage.By reviewing the relevant literature,it is found that domestic and foreign scholars mainly study the risk of stock price crash from two aspects: internal factors of the company and external market factors.There is no systematic and complete discussion on the relationship between the quality of information disclosure and the risk of stock price crash in these literature.And there is not enough literature to discuss whether analyst coverage has an impact on the correlation between the quality of information disclosure and the risk of stock price crashes.Therefore,under the background of immature capital market and frequent stock price crash in China,this paper studies the relationship between information disclosure quality and the risk of stock price crash of listed companies,explores the impact of analyst coverage on the relationship between the information disclosure quality and the risk of stock price crash,seeking ways to reduce the phenomenon of stock price crash.It has important theoretical and practical significance to protect the interests of investors,reduce systemic financial risks and promote the healthy development of China's securities market.Based on the efficient market hypothesis,information asymmetry theory and bad news hoarding theory,this paper makes a theoretical analysis of the relationship between the quality of information disclosure and the risk of stock price collapse of listed companies,and joins in the discussion of securities analysts,clarifies the internal relationship between the quality of information disclosure and the risk of stock price collapse of listed companies,and puts forward the hypothesis of this paper.At the same time,we selected the A-share listed companies on Shenzhen Main Board as the initial sample from 2011 to 2017.Through data screening,we finally got 303 A-share listed companies on Shenzhen Main Board,totaling 2121 effective sample observations.The risk of stock price crash is measured by the negative return skewness coefficient and the fluctuation ratio of return,and the quality of information disclosure is measured by the information disclosure evaluation published on the official website of Shenzhen Stock Exchange.Using panel data regression model to test the relationship between the quality of information disclosure and the risk of stock price crash.Further,according to the median of securities analyst coverage,the paper divides them into two groups: the high analyst coverage group and the low analyst coverage group,and carries out panel regression respectively.Through comparative analysis,the paper examines the impact of analyst coverage on the relationship between the quality of information disclosure and the risk of stock price crash.The following conclusions are drawn: Firstly,there is a negative correlation between the quality of information disclosure and the risk of stock price crash.The higher the quality of information disclosure,the lower the risk of stock price crash;Secondly,compared with the low analyst coverage companies,the negative correlation between the quality of information disclosure and the risk of stock price crash is more significant in the high analyst coverage companies.Securities analyst coverage strengthening the negative impact of the quality of information disclosure on the risk of stock price crash.Based on the research conclusions,this paper gives effective policy recommendations for listed companies,securities analysts and financial market regulators.Firstly,we should strengthen the internal management of the company and improve its information disclosure system.Enterprises themselves should strengthen supervision over the management of the company,reduce the behavior of the management to conceal bad news for their own interests,so that both positive and negative news can be disclosed to investors in time.Secondly,we should strengthen the management of information intermediaries and standardize the development of analyst industry.Securities analysts should strengthen self-discipline management,abide by professional norms,maintain objectivity and independence,provide accurate enterprise information for investors,and play a positive guiding role.Third,Regulators should actively play the role of market supervision to prevent the risk of stock price crash.The relevant regulatory departments of the securities market should standardize the information disclosure behavior of the management of listed companies,guide enterprises to disclose real and reliable information to the public in time,so as to reduce the occurrence of stock price crash.The innovation of this paper is that it not only studies the relationship between the quality of information disclosure and the risk of stock price crash,but also considers the influence of the securities analyst coverage on the above relationship.This research perspective makes this paper supplement the existing research results.The research conclusions provide a basis for the regulators of China's securities market to recognize and prevent the risk of stock price crash.