Deviant Strategy,Internal Control And The Crash Of Stock Price

In the context of the continuous progress of the global economic integration process,stock price "ups and downs" occur from time to time in both domestic and foreign capital markets,especially in recent years,the occurrence of stock price crashes is gradually frequent.The stock "crash" has seriously disturbed the normal operation order of the financial market,caused investors' assets to shrink and panic,and at the same time posed a major threat to the development of listed companies.Stock price crash is a financial phenomenon in which the price of a company stock or the stock market index declines sharply without obvious signs and expectations.Representative foreign scholars Jin and Myers(2006)put forward the information hiding hypothesis: when the market information transparency is low,the management to cover the cost of the negative news will thus reduce,management will blockade negative news out of personal interest,large Numbers of TunJi in time under the catalysis of negative news,management,and limited ability to hoard negative information these negative news will due to management cannot cover were pouring into the market,for collective panic investors sell holdings of shares,ultimately lead to share price collapse.In the face of the ever-changing Internet economy era,the complex and changeable global economic situation and the increasingly fierce competition,enterprises must make strategic decisions for sustainable development by combining multiple factors in order to have a place in the current of The Times.According to the current research,the enterprise strategy can be divided into the following three types: offensive,analytical and defensive.Offensive strategies are the most responsive to change,focusing on technological innovation,new product development and new markets.The enterprise that adopts this kind of strategy abandons original traditional company operation mode,this makes the enterprise bears huge risk.Defensive companies focus on existing products and markets,hoping to protect their market share by constantly reducing production costs by improving product quality and productivity.Will the changes in operating decisions and financial policies resulting from the company's strategy affect the risk of the company's stock market crash? Internal control is an important comprehensive internal mechanism of modern corporate governance.Effective internal control can help the operation and management of a company to be carried out under the framework of legal compliance,comprehensively control various risks and improve the rationality of enterprisedecision-making.Can high-quality internal controls reduce the risk of a share-price crash caused by aggressive corporate strategy?...