Research On The Impact Of Listed Company's Stock Price Collapse Risk On Over-investment

With the rapid development of economy,there are some problems in the development of China’s capital market.The frequent occurrence of stock price collapse is a prominent performance.The event of stock price collapse will lead to heavy losses for investors and damage the healthy and orderly development of the capital market.Therefore,more and more scholars begin to pay attention to the risk of stock price collapse,but many scholars regard the risk of stock price collapse as a consequence and study its influencing factors.The stock price includes all kinds of private information about the specific purpose of informed traders.The company’s management can obtain the information about the company’s future prospects according to the stock price,thus affecting the company’s investment decisions.Based on this,this paper takes the over investment of enterprises as the starting point,takes the risk of stock price collapse as the reason,and deeply discusses the investment behavior of listed companies after the risk of stock price collapse is increased.Through empirical analysis,it observes the changes of the investment behavior of listed companies after the event,and explores whether the companies with higher risk of stock price collapse will discover their own bad behavior and improve it because of the role of capital market It also provides a reference for listed companies to identify and control risks and enterprise value management.Based on the data of A-shares in Shanghai and Shenzhen stock markets from 2010 to 2018,this paper empirically analyzes the impact of the risk of stock price collapse on over investment.It is found that when the risk of stock price collapse increases,the level of over investment will decrease.In addition,the intervention of institutional investors can also promote the negative correlation between the risk of stock price collapse and over investment.Furthermore,this paper studies the impact of different property rights of enterprises and different monetary policies on the relationship between the risk of stock price collapse and over investment.The results show that in the period of non-state-owned enterprises and monetary policy tightening,the negative correlation between the two is more significant.In view of the above conclusions,this paper proposes to guide enterprises to improve their risk identification and control ability,improve their investment decision-making level,and build a reasonable equity structure,so as to promote the long-term development of enterprises and ensure the healthy and orderly capital market.