Political Connection,Environmental Information Disclosure And Stock Price Crash Risk

Stock price crash refers to the phenomenon that the stock price of an enterprise falls sharply and unpredictably in a short period of time.Stock price crash will lead to the evaporation of market value of listed companies,damage investors’ interests,shake investors’ confidence,and seriously affect the smooth operation of the capital market.In recent years,many scholars have carried out researches on the influencing factors of stock price crash risk,and have obtained abundant research results.Some scholars have studied the influence of political connection on stock price crash risk.This study takes Shanghai and Shenzhen A-share heavy polluting enterprises as samples,and attempts to further enrich relevant research results.At the same time,the environmental information disclosure is taken as the mediating variable to study whether the environmental information disclosure plays a mediating role in the influence of political connection on the risk of stock price crash,so as to further enrich the research on the transmission mechanism of political connection affecting the risk of stock price crash.The paper takes Shanghai and Shenzhen A-share heavy polluting enterprises from 2009 to 2019 as samples and uses multiple linear regression to test the influence of political connection on stock price crash risk,the influence of political connection on environmental information disclosure,the influence of environmental information disclosure on stock price crash risk and the transmission law of the political connection on stock price crash risk through the environmental information disclosure.Further,the samples are divided to explore whether the influence above-mentioned is significantly different between state-owned and non-state-owned listed companies of heavy pollution industry.The study shows that,for heavily polluting listed companies,political connection can affect the risk of future stock price crash through the quality of environmental information disclosure.In a word,political connection will increase the stock price crash risk.In addition,there is no significant difference between state-owned enterprises and non-state-owned enterprises in the effect of political association on stock price crash risk and environmental information disclosure.The negative correlation between environmental information disclosure and stock price crash risk and the mediating effect of environmental information disclosure is more significant in non-state-owned listed companies of heavy pollution industry.The research results enrich the related political connection and stock price crash risk,and have certain guiding significance for investors,regulatory authorities and heavy pollution listed companies to analyze and control the stock price crash risk and maintain the stability of capital market.