Research On The CEO Power Impacts On Stock Price Crashrisk

Compared with western developed countries,the capital market of China is really late,however,it has developed rapidly in advantage of those advanced experience.Combined with the actual situation of China,the government has made various laws and regulations to make the industry stable.And now the capital market of China is becoming more and more mature.However,it is precisely in the booming capital market that stock price crashes often occur.Xintai Electric was suspected of financial fraud and continued to fall,the amount of scollop in ZONECO was abnormally decreased,and the wealth shrinked sharply.These events not only do harm to the shareholders but also disrupt the order of the capital market.Therefore,it is of vital necessity to do a deep research in the field of stock crash risk.Meanwhile,it is verified that the stock price synchronization level of China is relatively high,we will further research the impact of CEO power on stock price synchronicity.We would propose some solutions according to the conclusions above,control the CEO power strictly,which is meaningful not only to the listed companies but also to the capital market.Based on the principal-agent theory and information asymmetry,we researched on how CEO power impact the stock crash risk and stock price synchronization.Further we explored the impact of the different property rights of listed companies.We collected the performance of China's listed companies between 2010 and 2017,and the personal characteristics of their CEO to build the CEO power model.Then we drew some conclusions with the method of regression analysis.We ensure the conclusions are accurate after the robustness test.That is,CEO power is positively related to stock price collapse risk and stock price synchronicity.Furthermore,state-owned company can promote the positive impact of CEO power.Finally,based on the conclusions above,we propose some solutions to avoid these tough situations,which is significant for the field of corporate governance.In addition,we put forward further improvement ideas for the shortcomings of this research.We hope to make some inspiration to other research in this field,which has important theoretical and practical significance.