Research On The Relationship Between Institutional Investors' Site Visit And Stock Price Crash Risk

The sharp rise and fall of the stock price means that the stock price suddenly rises or falls sharply without warning.Compared with the stock price skyrocketing,the economic consequences caused by the stock price crash caused by the slump are more serious.If the stock price crash occurs repeatedly,the stability of the financial market will be affected,the development of the real economy will be hindered,the losses of all investors will be huge,and the social order will be disturbed in severe cases.China's capital market is in a period of rapid development.Compared with the developed capitalist market in the West,its maturity and stability are not enough.Faced with various problems,the phenomenon of stock price plunging often occurs,and the number of plunging occurs more frequently.Seriously affected,capital market development has been hindered.The existing research finds that the risk of stock price crash is due to the existence of the principal-agent problem,which makes the management have multiple motives to hide the true information of the company,resulting in information asymmetry between shareholders and companies,and information accumulation cannot be timely in the stock price.The reaction,the last crash occurred.As an important part of China's capital market,institutional investors have high requirements for information quality,in addition to the financial reports promulgated by listed companies,the information disclosed by regulators and media reports,and the expertise they possess.Capabilities and financial advantages make them motivated and capable of expanding information mining channels,For example,through site visiting,actively communicate with company management to gain a more comprehensive and in-depth understanding of the company.Then,if the site visiting can improve the information disclosure level of the research company,can it reduce the risk of stock price collapse caused by information asymmetry?Therefore,this paper takes information asymmetry as the starting point,and takes the listed companies of the Shenzhen Stock Exchange's disclosure institutions from 2014 to 2017 as the research object,and uses the OLS method to empirically test the relationship between institutional investor site visiting and stock price collapse risk.The results show that institutional investor site visiting can reduce the risk of future company share price collapse.The reason is that institutional investors not only obtained more detailed information about the company,but also played an external supervision and governance role,which made the management information manipulation motivation decline,the enterprise information disclosure environment became better,and the future stock price collapse risk decline.Considering the different nature of ownership,it is found that institutional investors are more likely to reduce the risk of stock price collapse in non-state-owned enterprises than stateowned enterprises.Institutional investor site visiting is more likely to reduce the risk of stock price crashes in low-performing companies than high-performance companies.The results of this paper are: enriching the literature on the economic consequences of investor research,and also expanding the research on the factors affecting the stock price collapse risk,which has certain implications for the governance of listed companies and the protection of investor interests,and has certain significance.