The Impact Of Institutional Investors On The Risk Of Stock Price Crash

Capital market system of China is still not perfect as well as mechanism,and the stock price collapse of listed companies has occurred frequently.The risk of stock price collapse at the company level means that individual stock prices have fallen sharply in a short period of time.On the one hand,the risk of stock price collapse at the company level has broken the orderly and stable state of the capital market,which in turn has a negative impact on the listed company itself and the real economy;On the other hand,the risk of stock price collapse at the company level has harmed the interests of the majority of small and medium investors and investors' sentiment and confidence.In order to promote the formation of a deep,broad and flexible capital market,institutional investors have gradually become the mainstay of China's capital market relative to individual investors.Therefore,there is academic and practical significance of researching the impact of institutional investors on the risk of stock price collapse.In order to analyze the relationship between institutional investors and stock price collapse risk,this paper sorts out the related literatures of stock price collapse risk,institutional investors and the latter's influence on the former.Then this paper analyzes the formation mechanism of stock price collapse risk based on principal-agent theory and information asymmetry theory.Next,this paper analyzes the impact of institutional investors' shareholding on the stock price collapse risk from the perspective of horizontal effect and incremental effect through the empirical research of China's A-share listed companies from 2007 to 2017,and further analyzes the impact of stable and transactional institutional investment,independent and non-independent institutional investors,national teams and non-national teams on stock price crashes.The study finds that institutional investors' shareholdings and holdings increase the risk of stock price collapse;stable institutional investors can suppress stock price collapse risks relative to trading institutional investors;independent institutional investors can suppress stock prices relative to non-independent institutional investors;the national team can suppress the risk of stock price collapse relative to the non-national team.Based on the analysis of the formation mechanism and empirical analysis of stock price collapse risk at the company level,this paper proposes relevant policy recommendations.The research in this paper not only expands the research scope of institutional investors and the factors affecting the stock market crash,but also helps to build a new layout of institutional investors and national teams.