Ownership Concentration, Media Coverage And Stock Price Crash Risk

With the separation of management rights and ownership rights,there is an asymmetry of interests between shareholders and management,which leads to information asymmetry.Based on this,the shareholders hold more and more shares,the equity is more and more concentrated,the control of enterprise will increase correspondingly,can implement more supervision and control on the operator,in order to reduce the cost of information asymmetry.In addition,the media,as a relatively independent supervision mechanism outside the enterprise,has little connection with the enterprise,and media reports can affect the long-term development of the enterprise to a certain extent.Therefore,starting from the inside and outside of the enterprise,this paper studies the relationship between ownership concentration degree,media reports of different contents and the risk of stock price crash.This paper selects the a-share listed companies in Shanghai and Shenzhen from 2014 to 2018 as research samples,takes the shareholding ratio of the largest shareholder as the index to measure the ownership concentration,and manually collects the number of reports on listed companies by authoritative newspapers during this period.Empirical research finds that:(1)There is a significant negative correlation between the degree of equity concentration and the risk of stock price crash.That is,the higher the degree of equity concentration,the lower the risk of stock price crash.(2)Positive media reports have a significant negative correlation with the risk of stock price crash.That is,the more positive media reports,the lower the risk of stock price crash;Negative media coverage is significantly positively correlated with the risk of stock price crash.That is,the more negative media coverage,the higher the risk of stock price crash.(3)Positive media reports can positively adjust the negative correlation between ownership concentration and stock price crash risk;Negative media reports can negatively adjust the negative correlation between ownership concentration and stock price crash risk.In the further analysis,this paper divides the samples into state-owned enterprises and non-state-owned enterprises according to the property right nature,and finds that in non-state-owned enterprises,the influence of ownership concentration on the risk of stock price crash is more significant than that of state-owned enterprises,while the influence of media reports on the risk of stock price crash is more significant in non-state-owned enterprises.In non-state-owned enterprises,different media reports have a more significant impact on ownershipconcentration and the risk of share price collapse.Starting from the internal and external supervision systems of enterprises,this paper provides data for enterprises to improve the corporate governance mechanism,provides Suggestions for the media to better supervise the listed companies and alleviate information asymmetry,and provides suggestions for relevant departments to supervise the listed companies.