Research On The Negative List System Of Market Access To Stock Price Crash Risk

The negative list system of market access is an important strategic deployment of China to improve the socialist market economy system,which conforms to the trend of economic development and is also the reform of China to actively cope with the international economic environment.In 2016,The State Council and the National Development and Reform Commission officially issued the Draft Negative List for Market Access(Pilot Version),setting Fujian,Guangdong,Shanghai and Tianjin as the first batch of pilot cities for example.On June 5,2017,the second batch of pilot cities was expanded to 15.The negative list system for market access will be fully implemented in China by 2018.Negative list is a foreign investment access management mode promoted by European and American countries.China has introduced and innovated the negative list management mode for domestic and foreign investment.With the core of "either prohibited or prohibited",the negative list management mode is used to stimulate market vitality and reform the regulatory system.We will relax market conditions and encourage both the visible hand of the government and the invisible hand of the market to play their roles.For the government,it avoids vague wording,limits the government’s free approval power in the grey zone of market access,helps reduce rent-seeking and trade protection behaviors of local governments,and standardizes the public power of the government.As for the market,the negative list system has been unified throughout the country and "a single list is complete".Through the reform of administrative examination and approval,the entry cost of enterprises has been reduced,the initiative and enthusiasm of enterprises to enter the market has been strengthened,and more high-quality capital and enterprises have been attracted to participate in the market competition.However,since the implementation of the negative list pilot policy for the first time in 2016,the research of domestic scholars on the negative list system is slightly insufficient.The existing domestic literature on its micro-impact on enterprises is scarce.Most of the relevant literature in China is normative,and most scholars study the negative list system from a macro perspective.This paper probes into the significance and advantages of the negative list system and the gap between the negative list system and the foreign negative list system.Based on the exogenous characteristics of the negative list system for market access and its impact on micro market entities,this paper takes this as an opportunity to discuss its impact on stock price crash risk.In this paper,the implementation of the negative list system of market access is regarded as exogenous policy impact,and the negative return bias coefficient of stock prices and the volatility of stock prices are used to measure the stock price crash risk.Combined with the data of Chinese listed companies from 2010 to 2021,the multi-time point differential model is used to test the relationship between market access deregulation and stock price crash risk.The robustness of the regression results was tested by parallel trend test,placebo test,replacement of explained variables,replacement fixed effect and subsample regression,and the heterogeneity effect of internal control,industry competition and government intervention on the relationship between the two was further explored.The empirical results show that there is a significant negative correlation between the deregulation of market access regulation and the risk of stock price crash,and the implementation of the negative list system of market access can effectively reduce the risk of stock price crash.The negative list system reduces the entry cost of new enterprises and strengthens the initiative and enthusiasm of enterprises to enter the market.In addition,the negative list system sends out the signal of promoting marketization,attracts the continuous influx of capital,further increases the degree of competition in the product market,and inhibits the risk of stock price crash by alleviating agency problems and improving the quality of information disclosure.