The Influence Of Position Characterisitics Of Enterprises In Cross-shareholding Network On The Risk Of Stock Price Crash

In the context of supply side structural reform,cross shareholding as a means of corporate governance has become increasingly important.At present,scholars have carried out a wealth of research on its motivation and effect.However,there is still a lack of discussion on the impact of cross shareholding on the risk of stock price collapse from the perspective of the network.Therefore,this paper studies the impact of the location characteristics of cross shareholding network on the risk of stock price collapse.As an informal system,cross shareholding network also deserves further discussion on the ability of private enterprises and enterprises in low market development areas to reduce the risk of stock price collapse.In view of the present situation of cross shareholding and the existing research on cross shareholding network in China,cross shareholding is defined as a share held by another company.In this paper,two kinds of indicators,centrality and structural hole,are used to measure the position characteristics of enterprises in cross shareholding network,so as to explore the impact of the position characteristics of cross shareholding network on the risk of stock price collapse.The empirical results show that:(1)enterprises in the center of cross shareholding network can significantly reduce the risk of stock price collapse.(2)The more structural holes enterprises form in the network,the more significant the risk of collapse can be reduced.(3)Compared with the state-owned listed enterprises,the more central the non-state-owned listed enterprises are in the cross shareholding network,the lower the risk of stock price collapse.(4)compared with the enterprises in the high market development area,the more central the enterprises in the low market development area are in the cross shareholding network,the lower the risk of stock price collapse.The contribution of this paper is as follows:firstly,it is proved that the position of cross shareholding network can restrain the risk of stock price collapse of listed enterprises,and further proves that private enterprises and enterprises with low market development can improve the efficiency of resource allocation and reduce the risk of stock price collapse by virtue of the position advantage of cross shareholding network.Based on this,this paper provides new inspiration for the study of the risk of stock price collapse from the perspective of network,provides theoretical support for the impact of Cross Shareholding on the risk of stock price collapse,and also provides empirical evidence for cross shareholding decision-making.