Research On The Direct Role Of R&D Investment In The Risk Of Stock Price Collapse

On February 22,2019,General Secretary Xi Jinping proposed during the thirteenth collective study of the Political Bureau of the CPC Central Committee: "Preventing and resolving financial risks,especially systemic financial risks,is the fundamental task of financial work." In recent years,the party and the state have repeatedly mentioned "preventing financial risks" in major conferences,and have strengthened external supervision.Innovative companies are the darlings of the stock market,and corporate R&D investment is the basic support for corporate scientific and technological innovation.It is of practical significance to analyze the impact on China's financial market by focusing on the relationship between corporate R&D investment and stock prices.This paper explores the role of corporate R&D investment in the risk of stock market crashes,and the regulatory effects of external audits on it,and conducts in-depth research on the heterogeneity of property rights.The relevant data of China's listed Ashare companies from 2013 to 2018 are selected for empirical analysis.First,the relationship between corporate R&D investment and the risk of stock price crash is studied.Second,the moderating role of the external supervision mechanism is verified.The relationship between corporate R&D investment and the risk of stock market crash is verified.After researching in this paper,the following conclusions are drawn:(1)There is a positive correlation between the company's R&D investment and the risk of stock price crash.The greater the company's R&D investment,the higher the stock price crash risk,and the two are positively correlated;The impact is even greater at the low quantiles of the risk of a stock market crash.(2)After adding the influence of external supervision,high-quality audit will restrain the relationship between R&D investment and the risk of stock price crash.At the same time,the suppression effect of audit on the high quartile of stock price crash risk will be more obvious.(3)After distinguishing the nature of property rights,compared with state-owned enterprises,non-state-owned enterprises are more likely to bring the risk of stock price crash when increasing R&D investment.(4)Distinguish the nature of property rights and add the regulatory role of auditing.The study found that in non-state-owned enterprises,auditing can suppress the impact of R&D investment on the risk of stock price crash,but it is not significant in state-owned enterprises.Based on the above conclusions,this article puts forward some policy suggestions:(1)The company should strengthen internal control and improve the governance mechanism.(2)Give full play to the external supervision role of audit,Accounting firm should improve audit quality,and companies should seek high-quality audit services.(3)The government should strengthen supervision,standardize the company's information disclosure system,crack down on violations of laws and regulations,and ensure that information is open and transparent.