Research On The Impact Of Earnings Management On The Risk Of Stock Price Collapse

The phenomenon of "sharp rise and fall" in China’s stock market occurs from time to time.The violent fluctuation of the stock market will not only affect the development of the real economy,but also affect the stability and safety of China’s finance.Therefore,the violent fluctuation of stock price,especially the risk of collapse,has attracted extensive attention from market investors,company management,regulatory institutions,government departments,experts and scholars.At this stage,the research on the causes of the risk of stock price collapse is mainly attributed to the "hoarding of bad news" behavior of the company’s management.When the "bad news" within the company reaches a certain threshold and cannot be hidden within the enterprise,it will be released to the market in large quantities.Under the impact of a large amount of negative information,investors are easy to adopt irrational investment and trading strategies,that is,selling a large number of stocks,so as to induce the risk of stock price collapse.Therefore,in order to alleviate the risk of stock price collapse and reduce the impact of negative information on investor sentiment,it is necessary to solve the problem of internal and external information asymmetry.In order to hide "bad news" and release "good news",the management is mainly carried out through earnings management.Therefore,it is of certain significance to study the impact of earnings management on the risk of stock price collapse and the intermediary role of information disclosure quality.In this context,this paper analyzes the impact mechanism of earnings management on the risk of stock price collapse and the intermediary mechanism of information disclosure quality.On this basis,combined with signal transmission theory,information asymmetry theory and effective market theory,this paper takes Shenzhen listed companies from 2015 to 2020 as samples,Using the two-way fixed effect model of individual and time of panel data,this paper explores the effect of information disclosure quality on earnings management on stock price collapse risk from a comparative perspective,and further tests the impact of property right heterogeneity on stock price collapse risk.Through the empirical study of Stata software,it is found that:(1)both real and accrued earnings management have a positive impact on the risk of stock price collapse;(2)The quality of information disclosure plays an intermediary role in the impact of earnings management on the risk of stock price collapse.Based on this,this paper puts forward some suggestions on paying attention to the construction of information disclosure and reasonable control of earnings management,and we should strengthen external supervision,reduce information asymmetry,provide more useful information for investors and reduce the risk of stock price collapse.