Research On The Influence Of Institutional Investor Heterogeneity And Accounting Conservatism On The Risk Of Corporate Stock Price Crash

The stock price crash is an abnormal market that shows a sharp decline in fluctuations.It not only disrupts the established order of the stock market itself,but also seriously damages the interests of investors and dampens the confidence of the entire market.At the same time,it has a strong impact on the market economy and the survival of the company.Maintaining the bottom line of systemic financial risk is an inevitable requirement for China to build a modern economic system and achieve high-quality development.Therefore,research on the risk of stock price crash has certain theoretical and practical significance.The systematic risk contained in the stock price crash at the market level are universal and non-dispersible.Therefore,this paper focuses on the company-level stock price crash risk,in order to find more feasible and practical risk response strategies from the inside and outside of listed companies.At present,the academic community has basically reached a consensus on the formation mechanism of the company-level stock price crash risk,that is,the “information hiding hypothesis”.The hypothesis is that the root cause of the stock price crash risk lies in the centralized release caused by the management's collection of bad news at the company level.With the accumulation of quantity and time,this news will eventually flood the market and cause a collapse.As the internal governance mechanism of the company,accounting conservatism is an important means to alleviate the problem of principal-agent and information asymmetry,and is closely related to the company's stock price crash risk.Asymmetric recognition of revenue and loss is an important feature of accounting conservatism.It affects bad news hoarding behavior by affecting management preferences and information disclosure,and thus affects the company's stock price crash risk.Accounting conservatism is aimed at the information itself,but it is incomplete to explore the risk from the information itself,because every aspect of the information acquisition,processing,confirmation and disclosure is full of human factors.Compared with traditional internal governance,institutional investors are an important external force in corporate governance.By participating in the governance of listed companies,they can influence the time,content and preferences of information disclosure of listed companies.Whether they exert influence or not,they may eventually affect the company's stock price.Through literature review,the existing literature examines the relationship between institutional investors and stock price crash risk from shareholding ratio,competition culture,political connections,herd behavior,network centrality,information sharing and heterogeneity.As an internal governance mechanism,accounting conservatism can also become a means for institutional investors to participate in corporate governance.For this reason,this paper will study whether institutional investors will influence the company's stock price crash risk through interaction of accounting conservatism.Because institutional investors themselves differ in terms of shareholding time,industry,and business relationship with the invested company,which determines the difference in interest needs and governance behaviors of different institutional investors in the process of participating in listed companies.For this reason,exploring institutional investors requires an in-depth analysis of the heterogeneity of institutional investors.Therefore,the heterogeneity of institutional investors is further introduced,especially to analyze the impact of the interaction between institutional investor heterogeneity and accounting conservatism on company's stock price crash risk.Based on principal-agent theory,information asymmetry theory and stock market vulnerability theory,this paper takes the company's stock price crash risk as dependent variable,and use accounting conservatism,institutional investor heterogeneity and their interactions as independent variables.The theoretical model is derived based on theoretical analysis and research hypotheses,and the empirical model is further determined by a series of tests such as unit root,fixed and random effects,multicollinearity,heterogeneity,sequence correlation and cross-section dependence.Finally,regression analysis and robustness test are performed.This paper selects the A-share non-financial listed companies in Shanghai and Shenzhen stock exchanges from 2014 to 2018 as a sample,empirically tests the relationship between accounting conservatism and the company's stock price crash risk,and further analyzes the impact of the interaction between institutional investor heterogeneity and accounting conservatism on the company's share price crash risk.The results show that accounting conservatism is significantly negatively correlated with the company's share price collapse risk.At the same time,after introducing the heterogeneity of institutional investors,compared with non-steady boycott institutional investors,institutional investors with stable and independent characteristics actively participate in the governance of listed companies through the internal governance of accounting conservatism,so as to truly exert the supervisory and governance effects of shareholders.This shows that when controlling risks and stabilizing the market,we should not only consider the improvement of the quality of accounting information,but also distinguish the different types of institutional investors,especially focusing on the organic combination of internal and external governance mechanisms,so as to prevent and mitigate risks more effectively.Therefore,the research conclusions of the paper provide a certain reference value for preventing the risk of company stock price crash and maintaining the stable order of company and market.