The Impact Of Internet Public Opinion On The Risk Of Stock Price Collapse

In the era of Internet,information is no longer limited to the paper media of the past.With the help of the network,thetype,quantity and degree of interaction of information have been unprecedentedly improved.Even if a hot spot has just happened in other countries,it is often quickly known to Chinese netizens,and these public opinion information often has various effects on the stock market.Due to various influences,the vast majority of investors are discouraged by such a market due to its sharp fluctuations.This will undoubtedly hit the stock market system that has only developed for more than 30 years in my country,and the stock market is the source of direct financing in the substantial economy.The setback of the stock market will inevitably affect the direct financing of my country’s substantial economy,thereby impacting the entire national economic system.Based on such a public opinion background and the background of the times,this paper has a certain positive significance for the research on Internet public opinion and stock price crash risk.In our country’s stock market,discussions on individual stocks generally exist on major discussion platforms.From the frequency of hot words searched by Baidu,the Oriental Fortune Stock is the most prominent.Therefore,this article selects the data in the stock bar as the data source of this article.If the total number of readings of a stock post is larger,it means that the discussion and attention on the related situation in the network is higher,which will greatly affect the investors and even the corresponding corporate shareholders and executives.When a listed company receives a high degree of social attention,regardless of whether it has problems or not,in the face of pressure from public opinion,the company will often improve its internal governance level and improve relevant internal control systems,which will affect the listed company’s stock in the stock market.In addition,there is a lot of public opinion information that is not an objective evaluation of the prospects of individual stocks,but often has strong subjective emotions,which are either positive or negative.The spread of the world will inevitably affect the behavior of investors in the stock market by affecting the psychology of investors.In addition,Chinese enterprises are different from stateowned enterprises and non-state-owned enterprises,and the degree of influence of Internet public opinion on enterprises of different natures may be different.Whether these factors are different when they act on enterprises of different natures is a question worthy of further exploration in research..Based on this,this paper takes the readings of individual stock posts in the Oriental Fortune Stock Bar as an indicator of Internet public opinion attention,and by synthesizing the positive and negative classification of individual stock posts as the score of Internet public opinion sentiment,by establishing a fixed effect model,empirically obtain the following conclusions:(1)With the increasing attention of Internet public opinion,the risk of stock price collapse will be reduced.The theoretical part can start from the agency relationship between shareholders and executives: the extensive attention of public opinion in society will affect the company’s stock price,and shareholders can protect themselves.Interests will require the management of the company to make relevant rectifications,so that the overall operation and governance of the company is consistent with the expected situation of public opinion.(2)The higher the emotional tendency of Internet public opinion,the higher the risk of stock price crash.Many theories in behavioral finance point out that investors are not rational people in many cases.Excessive trust in one’s own decision-making,and at the same time following the market trend to buy certain stocks,the stock price has soared all the way,resulting in the accumulation of bubbles and increasing the possibilities of the shares price falls.(3)Compared with non-state-owned enterprises,due to the differences in internal governance between state-owned enterprises and non-state-owned enterprises,the impact of Internet public opinion attention and Internet public opinion sentiment on the risk of state-owned enterprises’ stock price crash has always been smaller.