The Impact Of Executive Overconfidence On The Risk Of Stock Price Crash

The stock price crash will bring a series of economic consequences and bring great harm to the national economic development.At present,the research on stock price collapse at home and abroad focuses on macro factors.But with the deepening of research,people gradually find that macro factors are not enough to fully explain the stock price crash.Therefore,based on the research perspective of behavioral finance,this paper analyzes the influence and influence path of executives' overconfidence and inefficient investment on the risk of stock price collapse.The research results in this paper Enriching the risk of stock price collapse.At the same time,it also provides empirical support for enterprises to pay due attention to the psychological bias of overconfidence of executives and improve the results of corporate governance.against the background that the macro factors found in the current research are not enough to fully explain the reasons for the stock price crash,this paper reviews scholars' research on executives' overconfidence,inefficient investment,the risk of stock price crash,and the relationship between them.Then we define the relevant variables and choose the measurement methods,and then put forward the hypothesis according to the behavioral finance theory,the higher echelon theory,the information asymmetry theory and the effective market theory.then establish the relevant regression model to test the hypothesis and draw the conclusion of the study.Finally,according to the research process and results,put forward targeted suggestions on how to reduce the risk of stock price collapse.In the empirical analysis of this paper,to 2013-2018 A listed companies in Shanghai and Shenzhen.To test the effects of overconfidence on inefficient investment and the risk of stock price collapse,to test the impact of inefficient investment and the risk of stock price crash,to test the impact of inefficient investment on the risk of stock price crash,and to test the mediating effect of inefficient investment between executive overconfidence and risk of stock price crash.The study found that executive overconfidence and inefficient investment can positively affect the risk of stock price collapse,and executive overconfidence canalso positively affect inefficient investment;in addition,inefficient investment plays a partial mediating effect in the relationship between executive overconfidence and the risk of stock price collapse.The research content and framework of this paper include five parts: introduction,concept definition and theoretical basis,research design,empirical analysis and results,research conclusions and suggestions.In the introduction part,this paper introduces the background and significance of the research,as well as related literature review,and finally introduces the research content and innovation.In the part of concept definition and theory foundation,the three main variables involved in this paper are defined,and their influencing factors and measurement methods are explained.In the research design part,the hypothesis is put forward according to the theory,and the model is constructed.In the part of empirical analysis and results,descriptive statistics,correlation analysis and regression analysis are carried out in turn,and the robustness test is carried out.Finally,according to the is tested according to the analysis results,and the relevant conclusions are drawn.At theSummary and recommendations section,summarize the findings of this paper and put forward policy recommendations.In the end,we conclude that the research in this paper is insufficient and look forward to the future research.