| The stock price crash seriously damages the interests of investors,dampens investors' confidence in the capital market,affects the healthy and stable development of the capital market,and even causes resource mismatches and jeopardizes the development of the real economy.The financial consequences of diversified operations of the company are important factors affecting stock price volatility.The institutional characteristics of the economic transition period are the main background for the company to implement the diversification strategy.Based on the perspective of China's marketization process,it is of great theoretical and practical significance to explore whether diversification will lead to volatility of stock prices and trigger the risk of company stock price crash.This paper takes China's 2009-2017 A-share listed companies as a sample,empirically examines the impact of diversification on the company's future share price crash risk,and focuses on how the marketization process affects the relationship between diversification and company stock price crash risk.The study found that diversification has a significant inhibitory effect on the company stock price crash risk,that is,the higher the diversification degree of the company,the lower the risk of stock price crash in the future;as the marketization progresses,the diversification degree of the company will collapse for the future share price.The suppression of risk is more obvious;further research based on the concentration of equity concentration found that the diversification of the risk of company stock price crash is mainly reflected in enterprises with high marketization and high concentration of equity.This study not only provides a new perspective based on the marketization process for understanding the relationship between diversification and stock price collapse,but also provides a decision-making reference for investors to avoid investment risks and system construction of government departments. |
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