Corporate Social Responsibility Information Disclosure, Senior Management's Shareholding, And Stock Price Collapse Risks

In recent years,the sharp rise and fall of stock prices in China's capital market has attracted worldwide attention.Especially,the stock price crash caused by the sharp fall of stock prices has posed a huge hidden danger to the security of China's securities market.Since 2016,the A-share market has witnessed a series of "1000-share collective drop and stop" anomalies,which seriously hinders the sound development of China's capital market.At present,China is in the period of economic transition.It is urgent to reduce the stock price crash risk and study its influencing factors.The key to reduce the stock price crash risk is to alleviate the degree of information asymmetry and avoid the self-interest of managers.With the development concept of "innovation,coordination,green,open and sharing" put forward by China,the concept of corporate social responsibility has attracted more attention and attention.Disclosuring corporate social responsibility can reflect informations about company's operation and management,which can reduce the degree of information asymmetry.Therefore,the research direction of this paper is the impact of corporate social responsibility information disclosure on the stock price crash risk.Based on the effective market theory,information asymmetry theory,stakeholder theory and managerial power theory,this paper studies the impact of corporate social responsibility information disclosure on the stock price crash risk in A-share listed companies from 2012 to 2017.What's more,the extent to which the company's negative news is concealed depends on the day-to-day decision-making and management of executives.Under the background of separation of ownership and management,when the executives hold company shares,in order to maximize equity remuneration psychology they have more stronger motivation to hide negative news.In addition,executives have a great autonomy in the way and content of social responsibility information disclosed.Furthermore,shareholding has a certain impact on the effectiveness of disclosure information.Therfore,this paper further researchs how the level of managerial ownership affects the relationship between the stock price crash risk and corporate social responsibility information disclosure.Through the research,we find that disclosure corporate social responsibility information can reduce the stock price crash risk;companies with higher executive shareholding the stock price crash become higher,and also weaken the negative correlation between corporate social responsibility and stock price crash risk.Furthermore,we find that voluntary disclosure corporate social responsibility information can reduce the stock price crash risk more obviously.Through the research,this paper provides some reasonable suggestions on speeding up the construction of corporate social responsibility information disclosure system in China and improving the quality of disclosure from three levels: company,investors and government regulatory authorities.Moreover,combining with the actual situation of executive stock ownership level of listed companies,this paper points out how to play a better role of disclosing social responsibility information to reduce the stock price crash risk and promote the stable and orderly development of China's capital market.