Research On The Impact Of Employee Stock Ownership On Stock Price Crash Risk

As an important governance mechanism of listed companies,equity incentive and employee stock ownership plan have played an important role in enhancing corporate cohesion and alleviating principal-agent problems.However,most of the existing researches focus on the governance effect of management incentive,while few scholars study non-executive employee shareholders.This paper takes Chinese A-share listed companies from 2007 to 2020 as research samples and explores the impact of ESOP on stock price crash risk from the perspective of agency theory.The results show that there is a significant negative correlation between ESOP and stock price crash risk,and business performance is one of the mediating mechanisms of ESOP influencing stock price crash risk.After further study,it is found that when the enterprise has serious underinvestment,high agency cost,high operating risk and the inhibition effect of ESOP on stock price crash risk will be more significant,that is,the supervision and governance effect of employee shareholders will be more significant.At the same time,after examination,it was found that the A-share market does not exist the so-called "collusion effect".In order to improve the robustness of the conclusion,alleviate the endogeneity problem,this paper adopted three kinds of different methods for robustness check,whether it uses employee-owned strength index,employee shareholding proportion index instead of employee shareholding virtual variables,or to return after the PSM matching,great changes have taken place the empirical results are not.In addition,this paper also found that the impact of management incentives on the risk of stock price collapse is not clear.This paper has very important theoretical and practical significance for the study of the relationship between ESOP and stock price crash risk and its influencing mechanism.On the one hand,this paper focuses on the employee shareholder as a special subject of the capital market,which can make up for the lack of relevant literature in this field to some extent,and expands the relevant research on the economic consequences of the implementation of employee ownership and the factors influencing the risk of stock price collapse.On the other hand,this paper discusses the governance effect of employee shareholders on stock price crash risk,which can provide reference for how to promote the healthy development of capital market and how to improve the quality of enterprise development.