Corporate Financial Asset Allocation And Stock Market Crash Risk

The stability of the stock market is very important for China's economic development,but due to the late start of China's capital market and insufficient supervision,there are still many problems in China's stock market.The danger of a collapse in stock prices cannot be ignored,not only to undermine investor confidence,to shrink the market value of enterprises,but also to expand the operational risks of financial markets.The stock price crash may be a collective crash under market risk,or it may be a stock crash under micro-impact.Driven by the profit of capital,a large amount of capital flows to the virtual economy,causing enterprises to deviate from their main business more and more.At the same time,companies can also use financial assets to disguise their true performance.The potential operating risk rises and the risk of individual stock price crashes increases,which may affect the stable operation of China's stock market.In this context,this paper studies the impact of financial asset allocation on the risk of stock price collapse in the future from the perspectives of enterprise risk bearing capacity and information disclosure.This paper uses listed companies in Shanghai and Shenzhen A-share of non-financial industry from 2007 to 2017 as samples to analyze the impact of financial asset allocation on the future stock price collapse.The research results show that the more financial assets a firm has,the higher the risk of stock price collapse in the future.Moreover,this paper finds that the higher the enterprise's risk bearing capacity and the more sufficient the enterprise's information disclosure,this relationship will be significantly weakened.Based on the above analysis,in order to promote the development of the stock market,the securities market regulatory authorities should strengthen the requirements on corporate information disclosure.From internal governance,enterprise also should improve the internal control system and enhance foreign information disclosure level.At the same time,firms need to improve their management of risk identification and investment decision-making ability,increase in the value chain of industrial capital injection,promote a virtuous cycle between the industrial capital and financial capital.