Inefficient Investment,corporate Social Responsibility And Stock Price Collapse Risk

The stock price crash refers to the phenomenon of panic selling of stocks for some reason,resulting in a sharp fall in the share price.The stock price crash greatly affects the stability and development of China's securities market and is not conducive to the efficient allocation of the capital market.After China's accession to the WTO,a series of policies of high-level trade and investment liberalization have been introduced,which have stimulated the rapid growth of the investment scale in China.However,due to the problems of principal-agent conflict and information asymmetry,enterprises also have inefficient investment.Academic research shows that it may increase the risk of stock price collapse.In order to reduce the degree of information asymmetry in the market,regulators require some companies to disclose CSR reports in an attempt to transmit more information to the public as a supplement to non-financial information.In order to achieve the sustainable development of enterprises and society,the state also requires the enterprise to fulfill the social responsibility,but the economic connotation of CSR is still not clear.The academic research also shows that there are still some objections to the impact of the stock price crash.In this context,this paper first analyzes the relationship between inefficient investment and CSR,and further analyzes the impact of inefficient investment on stock price collapse risk in the future,the role of corporate social responsibility in regulating the risk of inefficiency investment and stock price collapse is finally analyzed.The results are as follows:firstly,the disclosure of CSR reports and the performance of CSR reports can restrain the inefficiency investment level,and the mandatory disclosure of CSR reports do not significantly reduce the company's excessive investment.Second,inefficient investment increases the risk of stock price collapse in the future.Especially when the enterprise exists excessive investment,the future stock price collapse risk is greater.Third,the disclosure of CSR reports can regulate the relationship between inefficient investment and the risk of future stock price crashes,but the social responsibility performance measured with the CSR score does not regulate the positive relationship between over-investment and future stock price crashes.Finally,the paper carries out the measurement of the replacement of CSR indicators,the selection of the robustness test of different sample intervals,and the endogenous test of the GMM method and the two-stage method of Heckman.TheScholars have done a lot of research on inefficient investment,stock price collapse risk and corporate social responsibility,but few scholars have studied them together.Under the same frame,this paper takes the disclosure and the performance of CSR as a regulatory role to study whether CSR can regulate the relationship between inefficient investment and the risk of stock price collapse.This paper expands the literature research on the risk of stock crash.In addition,this paper not only studies the impact of current CSR on inefficient investment,but also studies the delayed CSR on inefficient investment,and reveals the lag of corporate social responsibility inter-period economic consequences and governance effects.Furthermore,it reveals the essence of corporate social responsibility affecting inefficient investment.