Study On The Risk Of Stock Market Crash

Stock prices reflect the development of the real economy which in turn affects the prosperity of the stock market.Meanwile,investors are the main participants of the stock market,the collapse of the stock price means that investors’ assets have been greatly reduced,or even "lost all of their money",which will not only suppress the enthusiasm of shareholders to participate in production and financial management,and may even cause instability to the society.Furthermore,the stock market is an important part of the financial market,the decline of the stock market will directly affect the stability of China’s financial market.Therefore,the study of stock price crash risk related factors,has a very important significance for the stability of China’s financial market and the protection of the interests of the majority of investors.In the analysis framework of stock price crash risk,the existing research literature does not directly consider the influence of ownership structure,which may lead to the deviation of research results.In this paper,corporate social responsibility information disclosure,ownership structure and their cross-relationship are introduced into the analysis framework of stock price crash risk at the same time,and the relationship between corporate social responsibility information disclosure,ownership structure and stock price crash risk is studied by using the measurement method of multivariable regression.After the empirical analysis,this paper takes huishan dairy industry as an example to explore the factors behind its stock price crash.Through in-depth analysis of the case,it reveals the actual impact of corporate social responsibility information disclosure on the stock price crash,which is,to some extent,verified by the empirical analysis results.The empirical results show that five variables,including corporate information disclosure,equity structure,corporate financial leverage,corporate profitability,and corporate information disclosure * equity structure,have a significant impact on the risk of stock price crash.From the perspective of influence effect,the strongest influence effect is the ownership structure,corporate responsibility information disclosure,corporate financial leverage,followed by the ownership structure * corporate responsibility information disclosure,corporate profitability.The result of the case study shows that the reason for the collapse of the target company’s stock price is that the management of the company conceals the negative news of the company while only releasing the positive information,forming the market illusion and confusing the market investors,so as to suppress the normal fluctuation of its stock price.When a one-time outbreak of negative news,market investors suddenly panic to sell and enterprise stock price crash.This result and empirical analysis confirm each other and prove the important influence of stock price stability of corporate responsibility information disclosure.