Research On The Impact Of Common Institutional Ownership On The Stock Price Crash Risk

After 32 years of rapid development,the volume of listed companies in our country’s capital market has exceeded 80 trillion yuan,and has formed a diversified pattern of both individual investors and institutional investors,together for the construction of China’s high-quality development of the capital market has laid the foundation.But in the development of more attention and vigilance is the stock price crash event,especially in the black swan,gray rhinoceros incident frequent at the moment,the stock price surge and plunge phenomenon is more serious.But behind every crash event,negative information is transmitted to the market and investors,which is not conducive to the high-quality healthy development of our capital market and to the increase of confidence and enthusiasm of domestic and foreign investors.Therefore,how to reduce the risk of stock price collapse and explore more factors affecting the stock price collapse has long been an important academic issue.At present,in our country’s capital market,it is very common for one institutional investor to hold the shares of several companies in the industry,which is called common institutional ownership in this thesis,and in the market and industry than the general shareholders showed a stronger ability and willingness to governance.Therefore,this thesis will explore whether common institutional ownership formed by common institutional investors can effectively reduce the risk of stock price collapse,and how they affect the development of the market.Therefore,this thesis discusses the influence of common institutional ownership on the risk of stock price collapse and its mechanism through the new ownership model of common institutional ownership.From the perspective of the ownership of common institutions,this thesis combines efficient market theory,principal-agent theory,social capital theory,resource dependence theory and Information asymmetry theory to analyze the influence of common institutional ownership on the risk of stock price collapse.Based on the data of listed companies in the 2021 of 2007-2021,this thesis finds that(1)companies with common institutional ownership can effectively reduce the risk of stock price collapse,which supports the “Cogovernance” hypothesis.And the higher the proportion and degree of joint institutional ownership,the lower the risk of stock price collapse.This result is still valid after a series of robustness tests,such as Heckman two-stage test,PSM + OLS test,PSM + DID test,and placebo test.(2)in the mechanism test,it is found that the ownership of common institutions can play the role of “Co-governance” by holding the power of the same industry formed by multiple enterprises and directly appointing directors,finally,we can reduce the risk of stock price collapse by improving the information transparency and corporate governance.(3)in the environment of internal and external heterogeneity,the effect of common institutional ownership on the risk of stock price collapse is more significant in the state-owned enterprises,the high concentration of industry and the financial background of executives.These findings provide empirical evidence for the active governance role of large institutional shareholders in capital markets and deepen the discussion of institutional investor Activist shareholder,it enriches the research perspective of common institutional ownership,and has certain reference value for further development of guiding common institutional investors to participate in corporate governance.At the same time,the conclusion of this thesis is of great practical significance and reference value to further promote the reform of capital market,create a better investment and business environment,and promote the high-quality development of our economy.