Institutional Investors Shareholding Ratio,Stock Liquidity And Stock Price Crash Risk

After 20 years of development,the stock market in China still has many shortcomings,which is reflected as price crash repeatedly in the stock market.For some reasons,a large number of investors in the stock market sell their shares,which cause stock prices fell sharply in a short time,the phenomenon is called "stock prices crash".Because of stock price rising suddenly and sharply,a lot of investors enter the stock market and even ignore the risks caused by the stock price volatility.But once the shares tumbled,investor losses and have no confidence,even this will affect stock markets.Stock price crash risk is more and more become the hot topic in academic circles.In this paper,we study institutional investors holding,stock liquidity impact on stock price crash risk from financial perspective.This paper used data from 2007 to 2015 A-share listed companies as research data.In learning and summarized on the basis of relevant researches both China and foreign,we use descriptive statistics,correlation test and regression analysis and other empirical research methods to research the relationship between Institutional investor shareholdings,the stock III liquidity and stock price crash risk.The conclusion is that:(1)Institutional investors' shareholdings and stock price crash risk were positively correlated,which meant the higher the institutional investors'shareholdings,the higher the risk of listed company shares crashed.(2)Stock liquidity and stock price crash risk were negatively correlated,which meant the better the stock liquidity,the lower stock price crash risk.(3)The better the stock liquidity,the lower positively correlated between Institutional investors' shareholdings and stock price crash risk.Further study found that the GEM(Growth Enterprise Market)was easier to appear stock price crash risk.And by studying the nature of property rights for the influence of stock price crash risk,if state holding listed companies had a better stock liquidity level,the stock price crash risk would be significantly reduced.These findings broaden the research of the factors that affect stock price crash risk,enrich the institutional investor shareholding related literature.It is meaningful to government regulators to guide investors making rational investment,maintain the benign development of the capital market.