Study On The Impact Of Fintech On The Stock Price Crash Risk

The phenomenon of stock price crash has occurred frequently in China’s stock market in recent years.The instability of the stock price can have a psychological impact on investors and cause them to panic,which is detrimental to the creation of a good market environment.Meanwhile,fintech has injected new momentum into the financial industry and has become a hot topic in recent years.In this context,the study of the impact of fintech on the risk of listed enterprises stock price crash is of pivotal importance both for the development of fintech in China and for the stability of China’s stock market.This paper selects the listed enterprises in Shanghai and Shenzhen A-shares in China from 2014-2021 as the research sample.Firstly,it explores the impact of fintech on enterprise stock price crash risk.Secondly,it studies the impact mechanism of fintech on stock price crash risk with information disclosure quality and internal control quality as the mechanism variables.Finally,it conducts heterogeneity analysis based on enterprise size,enterprise property rights nature,institutional environment and regional financial development level to explore the impact of fintech on the differential effect of corporate stock price crash risk.The research results indicate that(1)there is a remarkable negative relationship between financial technology and the risk of stock price crash of listed enterprises,i.e.,the development of financial technology can effectively reduce the risk of stock price crash.(2)The quality of information disclosure and the quality of internal control are the mechanism variables through which fintech can reduce the risk of stock price crash,i.e.fintech can reduce the risk of stock price crash by improving the quality of information disclosure and the quality of internal control.(3)With respect to firm size,fintech is more effective in reducing the risk of stock price crash in small-scale firms than in large-scale firms.With respect to the nature of corporate ownership,the effect of fintech on the risk of corporate stock price crash is mainly found in non-state enterprises.With respect to institutional environment and financial development level,the suppressive effect of fintech on stock price crash risk of listed firms is more pronounced in regions with high institutional environment and high financial development level than in regions with low institutional environment and low financial development level.The research in this paper expands the study of fintech in stock market and also provides new practical directions for reducing the risk of corporate stock price crash.