The Impact Of Investor Sentiment On The Risk Of Stock Price Collapse From The Perspective Of Accounting Conservatism

With the emergence of behavioral finance,I nvestors’ bounded rationality is gradually accepted by people.As an important part of behavioral finance,investor sentiment changes will affect investors’ behavior and managers’ choice of accounting policies.The emergence of social media provides investors with a platform for information transmission and exchange,and provides a text source for the study of investor sentiment.In the stock market,the fluctuation of stock price is affected by investor sentiment.The fluctuation of stock price is very common,and in extreme cases,it will cause the risk of stock price collapse.The collapse of stock prices will not only make investors lose huge amounts of funds,but also may promote the financial system to have adverse consequences.Therefore,it is necessary to study the impact of investor sentiment on the risk of stock price collapse.This paper uses Python to conduct text mining and emotional analysis on the posts of Oriental Fortune Stock Bar from 2019 to 2021 and construct quarterly investor sentiment indicators.At the same time,we use the C-Score model of Khan and Watts to measure the accounting conservatism index,use the risk index of stock price collapse to build a relevant model,discuss the impact of investor sentiment on the risk of stock price collapse from the perspective of accounting conservatism,and further introduce the property right nature to conduct a differential inspection.The results show that investor sentiment has a positive correlation with the risk of stock price collapse,and the high emotional state promotes the risk of stock price collapse;Accounting conservatism can adjust the impact of investor sentiment on the risk of stock price collapse;There are differences in the impact of investor sentiment on the risk of stock price collapse under different property rights,and the impact is more prominent in private enterprises.At the end of the article,some suggestions are put forward from the perspective of internal and external participants of the company.