Corporate Strategic Difference,Institutional Investors And The Stock Price Crash Risk

The prevention and resolution of major risks is an important issue in China's current economic field,the outbreak of a large number of stock price crashes has further promoted the research on the stock price crash risk.The management's behavior of hiding bad news stems from its pursuit of personal interests rather than maximization of corporate interests.In the process of hiding bad news,the company's stock price drops sharply when it gathers beyond the company's bearing range.This has seriously damaged the interests of owners' and investors' confidence,and the vitality and resilience of capital market development is beyond mention.At present,China is facing economic transformation,a large number of companies choose to deviate from the conventional strategic mode to change the strategy,so as to adapt to the complex and changing external environment,which is the origin of strategic difference.This is the coexistence of opportunity and risk for the enterprise.So,will the strategic difference of enterprises have an impact on the risk of stock price crash? At the same time,institutional investors have certain professional analysis foundation and information mining ability,which are an important force to play the supervision function and deal with the instability of the capital market.So will the proportion of institutional investors affect the relationship between strategic difference and the risk of stock price crash? What are the different impacts of the heterogeneity of institutional investors? Through combing the relevant domestic and foreign literature,it is found that the research combining the two parts is still lacking.This paper undertakes research about the influence of strategic difference on the stock price crash risk and the governance effect of external supervision mechanism--institutional investors on listed companies from 2007 to 2016.The results of this study show that the degree of strategic difference significantly increases the risk of the company's stock price crash.Further research finds that when the company's information asymmetry degree is higher and agency conflict is more serious,the positive relationship among the strategic difference and the stock price crash risk is much more pronounced.This shows that strategic difference may affect the risk of stock price crash through information effect and management opportunism effect.And the increase of institutional investors' shareholding ratio can significantly reduce the risk of the stock price crash caused by strategic difference.Considering the internal classification of institutional investors,stable institutional investors can significantly reduce the impact of strategic difference on stock price crash risk.In view of the research conclusions,the following suggestions are mainly put forward: although this paper finds that strategic difference will lead to the stock price crash,it does not mean that the strategic difference and changes in resource allocation are completely denied.The company needs to control the strategic difference reasonably,carry out the steady strategic decision and perfect the strategic information disclosure.At the same time,government regulatory authorities should actively develop stable institutional investors,guide institutional investors to participate in the construction of the capital market in an orderly manner,so as to alleviate the risk of stock price crash caused by strategic difference.This article enriches the research on the economic consequences of the strategic difference of listed companies,which has certain enlightenment to reduce the risk of stock price crash and maintain the stability of financial markets.At the same time,it expands the research content of the relationship between the strategic difference and the risk of stock price crash,guides the rational choice and formulation of corporate strategic decisions and is conducive to the effective improvement of corporate external governance.