Research On The Impact Of Independent Director Network On Stock Price Crash Ris

After more than 30 years of development since the establishment of Shanghai and Shenzhen Security Exchange,China’s capital market has gradually established a multi-level capital market including the Main Board,SSE STAR Market,Chi Next,Beijing Stock Exchange,New Third Board and Regional Stock Exchange.The construction of market system has made great progress and is playing an increasingly important role in the national economy.At the same time,the capital market of our country also has problems such as the imperfect system,the lack of supervision and so on,and the "skyrocketing and plummeting" phenomenon occurs from time to time.The crash of stock prices will distort the function of optimizing resource allocation in the capital market,damage the interests of investors,especially small and medium investors,and cause a series of negative effects.As the most important decision-making and supervision organization,the board of directors plays a decisive role in the operation and management of enterprises.The board members of listed companies include at least one third of independent directors.With the gradual establishment and improvement of modern enterprise system,independent directors have gradually changed from the role of "vase" in the past and are playing an increasingly important role in corporate governance.According to the regulations of China Association of Listed Companies,one person can concurrently serve as the independent director of five listed companies at most.The cross-serving of independent directors forms an independent director network among listed companies and promotes the function of independent directors.Therefore,from the perspective of social network,this paper analyzes the influence of independent director network on the risk of company stock price crash,so as to investigate the substantive role of independent director system.After systematically combing the previous studies of scholars,this paper uses Mosaic theory,weak connection advantage theory and social capital theory as theoretical support to clarify the perspective of social network research,construct the social relationship network formed by independent directors concurrently,and investigate the influence of independent director network location on stock price crash risk.In the empirical analysis part,this paper takes the data of Shanghai and Shenzhen A-share listed companies from2010 to 2020 as research samples.After sample screening,the data processing software Stata is used to conduct correlation analysis,univariate analysis and main regression analysis on the selected sample data.On this basis,the endogeneity and robustness tests were conducted by means of instrumental variable method,propensity score matching method,replacement of explained variables,etc.,in order to enhance the reliability of empirical results.Through theoretical research and empirical analysis,this paper draws the following conclusions: The higher the centrality of the independent director network of listed companies,the lower the risk of stock price crash,that is,the independent director network is negatively correlated with the risk of stock price crash,and this relationship passes the endogeneity and robustness test.Mechanism test analysis shows that the independent director network can restrain the risk of stock price collapse by reducing agency conflict and improving the quality of information disclosure.Further research shows that,compared with enterprises with "less hollowing out effect" and state-owned enterprises,the influence of independent director network on stock price crash risk is more obvious in enterprises with "more hollowing out effect" and non-state-owned enterprises.Compared with enterprises with high corporate governance efficiency,the influence of independent director network on stock price crash risk is more obvious in enterprises with low corporate governance efficiency.Compared with the enterprises concerned by analysts and research newspapers and with a higher degree of investor protection,the influence of independent director network on the risk of stock price collapse is more obvious in the enterprises concerned by analysts and research newspapers and with a lower degree of investor protection.Finally,this paper summarizes the research and puts forward corresponding policy suggestions from the perspectives of enterprises,investors and regulatory authorities.