Research On The Influence Mechanism Of Executives’ Opportunistic Behavior Of Stock Selling On Stock Price Crash Risk

As an important component of the capital market,the stock market’s significant fluctuations are not conducive to the optimal allocation of resources and high-quality economic development of a country.Therefore,exploring the causes of stock price collapse risk has become a hot research topic in recent years.As a company manager,executives possess the most authentic first-hand information of the company,and their behavior has a significant impact on the company’s price performance.Whether the opportunism shareholding reduction of executives will lead to an increase in the risk of stock price crash,and how to increase the risk of stock price crash,this is a problem worth studying.This paper takes A-share executives’ selling events from 2010 to 2021 as the research object,and empirically tests the impact of executives’ opportunistic selling behaviors on the company’s future stock price crash risk.The results show that the executives’ opportunistic selling behavior increases the company’s stock price crash risk,and the larger the executives’ selling amount,the higher the company’s stock price crash risk.Further,based on principalagent,insider trading and other theories,this paper empirically explores the influence mechanism of executives’ opportunistic divesting behavior on the company’s future stock price crash risk.The results suggest that:(1)Opportunistic selling by executives increases the company’s stock price crash risk in the future,while conventional selling does not.(2)Executives’ opportunistic downsizing affects the company’s stock price mainly through information manipulation and timing.This paper starts with the executives’ opportunism shareholding reduction behavior,explores its impact mechanism on stock price crash risk,enriches the research on the causes of stock price crash risk and the economic consequences of executives’ shareholding reduction,provides ideas for regulatory authorities to regulate executives’ shareholding reduction behavior,and provides a theoretical basis for maintaining the healthy and stable operation of the stock market.