Chairman's Hometown Identity,Corporate Social Responsibility And Stock Crash

Influenced by Confucianism and traditional culture for thousands of years,China is a country with strong local feelings,and its hometown has a special status in people's hearts.Hometown identity has many effects on economic and social decisions,such as company agency costs,risk level,investment choices,etc.But there are less paper.This article discusses the impact of the chairman's hometown identity on the stock price crash risk from the perspective of identity economics and microcorporate governance,discusses the influence of the chairman's hometown identity to the stock price crash risk,and hopes to supplement the relevant research through this new perspective.Taking 2013-2018 A-share non-financial listed companies in Shanghai and Shenzhen as a sample,it is found that:(1)When the birthplace of the chairman is the same as the province where the listed company is registered,the stock crash risk of the listed company can be reduced,that is,the hometown identity of the chairman is negatively related to the risk of the company's stock market crash.(2)The mechanism by which the identity of the chairman's hometown can reduce the risk of stock price crash is that the chairman with the hometown's identity can actively perform social responsibilities,while fulfilling the social responsibilities,increase the confidence of investors and other stakeholders,so that they can Reduce the risk of stock market crashes.(3)In regions where listed companies have a high degree of marketization,the stock crash risk can be more suppressed.And the above conclusions still hold after a robustness test.At this stage,China is still in the early stages of the development of the capital market.Paying attention to the hometown identity of the chairman,there is a certain degree of how investors make investment decisions,the supervision of the stock market,and how listed companies can prevent their own stock market crash risks.