Research On The Over-investment,External Audit Quality And Stock Price Crash Risk

In recent years,the sharp rise and fall of China's stock market has attracted the attention of many scholars and media.Especially in 2015,China's stock market experienced the largest increase of a bull market in nearly seven years.Within a year,more than thousand China's stocks' limit-up had become limit-down.Stock price fluctuations had lead to the collapse of China's stock price.The drastic fluctuation of stock price shows that there are serious hidden dangers in the development of China's stock market.These hidden dangers in a certain opportunity concentrate outbreak have a bad influence on China's stock market.If the phenomenon of stock price crash lasts too long and involves more stocks,it is likely to destroy the confidence of investors,which is not conducive to the healthy and stable development of the capital market.Due to the destructiveness of stock price crash risk,more and more scholars focus on the research what factors trigger stock price crash and what behaviors can effectively prevent or reduce the risk of stock price crash.Based on the above background,selection of a-share listed companies from 2012 to 2017 as the research object,mainly studies the excessive investment and the role of the relationship between stock price crash risks,further study on the impact on the relationship between external quality audit.At the same time,by grouping regression according to different property rights,this paper examines whether the influence of high-quality external audit on the relationship between overinvestment and stock price crash risk is different between state-owned listed companies and non-state-owned listed companies.The results show that:(1)Over-investment and stock price crash risk are positively correlated.(2)High-quality external audit weakens the impact of excessive investment on the risk of stock price crash.(3)Compared with non-state-owned listed companies,the improvement of audit quality of state-owned listed companies is conducive to curb the negative impact of excessive investment on stock price crash risk.The research of this paper is helpful for investors to make reasonable investment plans and avoid risks by using existing market information.It is helpful to find new measures to curb the risk of stock price crash and provide the latest experience and evidence for the stock market of China which is greatly affected by the risk of stock price crash.It is conducive to the effective supervision of the stock market by China's supervisory and administrative departments to improve the work efficiency of regulators.At the same time,it is also beneficial for China's regulatory authorities to start from the company,strengthen the supervision of the management,better prevent and improve the risk of the capital market,and contribute to the healthy development of China's capital market.