Study On The Relationship Between Debt Heterogeneity And Corporate Stock Price Collapse Risk

The creation of the twin-city economic circle of Chongqing is proposed by China based on the national economic development strategy,which plays an important supporting role in promoting the development of the western region in the new era and the development of the Yangtze River Economic Belt.At the same time,it can also promote the construction of "one belt and one road" and build a new development pattern of international and domestic double cycle.Since the financial crisis in 2008,a large number of companies have experienced share price crashes,which have had a very negative impact on the effective operation of the financial market and a great blow to the development of the economy as a whole,and the frequent occurrence of share price crashes has seriously damaged the healthy development of the capital market and the financial economy.To explore the factors influencing the stock price collapse,this paper devotes its attention to debt heterogeneity.Based on the strategic perspective of Chengdu-Chongqing twin-city economic circle,this paper takes the financial data of listed companies in Sichuan-Chongqing region from 2010 to 2020 as the initial sample and constructs a systematic theoretical analysis framework on the correlation between debt heterogeneity and stock price crash risk based on information asymmetry theory,signaling theory,principal-agent theory and debt governance theory,and adds board size and equity checks and balances as the moderating variables.The empirical analysis is conducted by using the sample data as the moderating variables.By conducting empirical regressions on the research model set up,this paper obtains a series of conclusions: debt heterogeneity of firms is negatively correlated with the risk of stock price collapse;when board size is introduced as a moderating variable,the regression results show that larger board size strengthens the negative relationship between debt heterogeneity and the risk of stock price collapse of firms;when equity balance is introduced as a moderating variable,the regression results show that that a larger degree of equity checks and balances strengthens the negative relationship between debt heterogeneity and the risk of corporate stock price collapse.The above findings apply to debt source heterogeneity as well as debt maturity heterogeneity.From the regressions,more practical management policies are suggested: on the one hand,firms should continue to broaden their financing channels and optimize their financing structure,and they should optimize debt heterogeneity according to their own situation.On the other hand,due to the existence of information asymmetry and agency problems,companies should expand the size of the board of directors as much as possible in order to improve the first type of agency problems.The second type of agency problem can be improved by strengthening the checks and balances of the company’s shareholding and the checks and balances among shareholders,so that the interests of minority shareholders can be more protected.