Managers’ Risk Preference,Enterprise R&D Investment And Stock Price Crash Risk

Since the 18 th National Congress of the Communist Party of China,the Chinese government has always placed financial security in a prominent position and constantly introduced policies and measures to prevent and control financial risks and stabilize the financial system.China’s financial system is facing severe challenges due to the COVID-19 pandemic and the downward pressure on the international economy,share prices collapse phenomenon of frequent serious threat to the capital market stability and hinder the development of market economy.Scholars at home and abroad have studied the causes of stock price collapse from the perspective of enterprise internal structure,enterprise investment and financing activities,government,media and other external supervision.With the deepening of the research,scholars began to expand the research perspective to the personal characteristics,education background and ability of the enterprise managers.But few literatures have studied the psychological characteristics of managers’ risk preference.Therefore,this paper attempts to explore the relationship between managers’ risk preference and stock price crash from the perspective of managers’ risk preference,and how it affects the occurrence of stock price crash.This paper sorted out relevant literature on stock crash risk,managers’ risk preference and R&D expenditure,and put forward research hypotheses on the basis of current situation analysis and theoretical analysis.Taking a-share listed companies from 2009 to 2020 as samples,this paper constructs stock price crash risk index,introduces R&D spending as an intermediary variable,empirically tests the impact of managers’ risk preference on stock price crash by step-based regression,and then makes further analysis on differences in property rights,internal control quality and external audit status of enterprises.The results show that:(1)managers’ risk preference is significantly positively correlated with the risk of stock price collapse;(2)managers’ risk preference has a significant positive impact on R&D spending of listed companies;(3)R&D spending plays a mediating role in the impact of managers’ risk preference on stock price crash risk.;(4)In the enterprises with non-state-owned property rights,low quality of internal control and low quality of external audit status,the positive relationship between the two is more significant.Based on the above conclusions,this paper puts forward the enterprise shall establish comprehensive executives hired evaluation system,strengthen the project risk identification and control,to perfect the information disclosure system,the government should strengthen market supervision and improve the violation penalties,external audit and analysts to give full play to the supervision and restraint,investors must set up risk consciousness of rational enlightenment.