Institutional Ownership,internal Control Quality Of Listed Companies And Stock Price Crash Risk

In recent years,the stock price crash has caused a large negative impact on the entire capital market and investors’ interests,and has become the focus of market attention.Many scholars try to discuss how to restrain the occurrence of stock price crash from the source.Some of the literature pointed out that institutional investors,as external supervisors of listed companies,are conducive to standardizing management operations,reducing information asymmetry,and curbing the risk of stock price collapse.Based on this,this paper conducts research on the data of listed companies in China in the past five years and draws different conclusions.In addition,this article also incorporates the internal control quality of listed companies into the relationship model between institutional shareholding and stock price crash risk,and studies how the structure of listed company’s institutional shareholding and governance level interact with the risk of stock price crash,making up for the current research gap in the academic world.This paper draws on domestic and foreign relevant research,incorporates the internal control quality of listed companies into the relationship model between institutional shareholding and stock price collapse risk,and constructs corresponding measurement indicators using China’s capital market data.This article focuses on the following issues:(1)What is the relationship between the internal control quality of listed companies and the risk of stock price crash;(2)What is the relationship between institutional holdings and stock price crash risk,especially considering the difference in market status and the heterogeneity of institutional investors;(3)How does the interaction between the internal control quality of listed companies and institutional shareholding affect the stock price crash.This paper selects 5,850 effective observations of listed companies in the Shanghai and Shenzhen stock markets from 2014 to 2018 as research samples,uses ordinary least squares(OLS),regulatory effect models,etc.for regression analysis,and draws the following conclusions for the problem:(1)High as the internal control quality is conducive to standardizing the management of the company’s management and reducing the asymmetry of market information,which can reduce the probability of the stock price crash risk;(2)Institutional investors have a strengthening effect on the stock price crash risk,especially in the bear market and “pressure-sensitive” institutional investors;(3)The interaction between the internal control quality of listed companies and institutional shareholding will weaken the risk of stock price collapse.The interaction of internal control quality with the holdings of “pressure-sensitive” institutions has a stronger effect on reducing the risk of stock price collapse.Finally,after controlling the endogeneity and replacing the main research variables,it was tested again,and the research conclusion is still true.