A Study On The Impact Of Debt Concentration On The Risk Of Stock Price Collapse By A Group Of Listed Companies

In recent years,China’s rapid economic development,the capital market continues to open up,the stock market transactions are becoming more and more active,and the ensuing phenomenon of stock price crash has occurred frequently in China’s A-share market.The dramatic fluctuation of stock prices,especially the plunge phenomenon,has seriously affected the healthy and stable development of the capital market and may even threaten the operation of the real economy,so the collapse phenomenon of stock price plunge is of great concern to all sectors of the society.At the same time,the group model with many subsidiaries is a common phenomenon among listed companies in China,and based on the internal capital market theory,the arrangement of the main body of liabilities within the group-type listed companies has become an important aspect of the financial institutional arrangement within the group,especially the concentration of liabilities has become an active strategic choice for the group enterprises,which will inevitably have an impact on the capital structure and management behavior of the company and It causes fluctuations in the company’s share price and thus affects the company’s future share price collapse risk.Therefore,it is necessary to study what kind of impact the concentration of liabilities of listed companies will have on the company’s future share price collapse risk.So,what is the impact of the concentration of debt of the listed company group on the future stock price collapse risk? What is the path of its impact? What is the impact of the difference between the overall operating performance of subsidiaries on the relationship between the two? This paper examines these questions.Firstly,we introduce the research background and theoretical relevance of this paper,review the existing research literature,explain the relevant theories involved in this paper,and propose the research hypothesis based on this paper.Then the hypotheses are tested empirically,including the selection of variables,the construction of the model,the regression analysis of the data,and the robustness test to verify the reliability of the paper’s conclusions.Finally,we analyze the findings of this paper,propose corresponding countermeasures,and summarize the shortcomings and future prospects of this paper.This paper selects the data of A-share listed companies with subsidiaries in China from 2003 to 2020 as the research sample,and draws the following conclusions:(1)The degree of concentration of liabilities of listed companies’ group is significantly and negatively related to the risk of future stock price collapse,and the higher the proportion of liabilities of the parent company of listed companies’ group to the overall liabilities of the group,the lower the risk of future stock price collapse of the company,indicating that the concentration of liabilities of listed companies will significantly This indicates that the concentration of listed companies’ liabilities will significantly reduce the risk of stock price crash in the future.It is further tested that the concentration of listed companies’ liabilities affects the company’s stock price crash risk through the information path and agency cost path.(2)The overall operating performance of subsidiaries affects the relationship between the degree of debt concentration and the company’s future stock price crash risk,and the negative relationship between the two is more significant when the overall operating performance of subsidiaries is worse.