Empirical Research On Stock Liquidity And Stock Price Crash Risk

The stock market can gather social wealth widely and provide a large amount of funds for enterprise development,promoting the transformation of enterprises into modern enterprise system and enhancing the competitiveness of enterprises Besides,the social resources are rationally optimized and allocated,which can promote the development of the whole economy.The stock market is also an important investment channel for investors' wealth allocation.Investors can not only diversify investment risks,but also enjoy the dividends brought by the company's development to realize the value-added and preservation of wealth.Therefore,the healthy and stable development of the stock market is crucial to the development of China's economy.But China's stock market is still at the stage of development,and there are various problems that need to be solved.Once the stock price collapses,it is easy to cause market panic,which leads to a large amount of investor's wealth evaporation and loss of confidence in the stock market.The stock market can't provide financing channels and allocate social resources,which in turn affects the healthy development of China's economy.Stock liquidity is an important reference indicator for market transactions and what effect does it have on the stock price crash risk? This paper takes stock liquidity as a research perspective and conducts in-depth research from the external factors of stock price crash.Firstly,the paper analyzes the reasons for the formation of stock price crash from the internal and external factors,the theory of stock liquidity,and conducts empirical research on the liquidity of stocks in China's A-share market.On this basis,analyzing the relationship between stock liquidity and stock price collapse risk under the difference in property and institutional shareholding ratio.Secondly,this paper selects the relevant data of the Shanghai and Shenzhen A-share market for 2012-2017 consecutive years and eliminates the financial industry companies,The empirical regression results of this paper show that the higher the stock liquidity,the greater the possibility of stock price collapse in the future;due to the nature of the company's property rights,the non-state-owned enterprise liquidity has a weaker effect on stock price crash compared with state-owned enterprises;due to the difference in the shareholding ratio of institutional investors,the company's liquidity has a weak positive impact on the collapse of stock price compared to companies with a high institutional shareholding ratio.Finally,according to the empirical results of the article,the following policy recommendations are drawn: from the perspective of the relationship between stock liquidity and stock price collapse risk,as a regulator,it is necessary to reasonably guide the region where stock liquidity tends to be reasonable;regulators should adopt fair supervision and information disclosure principles for state-owned and non-state-owned property rights,so as to establish a fair market environment;regulators should actively guide institutional investors to invest long-term in terms of the different impacts of institutional shareholding differences.Focusing on the long-term value of the company,reducing the pressure effect of short-term institutional investors on management,and prompting management to formulate measures to enhance the company's value in the long run,are better solutions.