Institutional Holdings,Fund Network And Stock Price Crash Risk

The A-share market crash in China’s capital market in 2015 and the US stock market circuit breaker in the US capital market in 2020 left A deep impression on everyone.In recent years,the shocks in the capital market around the world make the risk of stock price crash become a hot topic of discussion in the academic circles.The collapse of stock prices will not only cause huge losses to individuals and institutional investors,but also may have a significant negative impact on the whole real economy,which is not conducive to the long-term development of the real economy.In the process of gradually perfect capital market in our country,the number of institutional investors is gradually increasing,fund industry thus obtained the leapfrog development,more and more individual investors from "people" to "base",many scholars also look to fund companies represented by institutional investors behavior on the impact of the capital market,hope to further discussion and research on related topics.This paper mainly discusses how the institutional shareholding ratio affects the risk of stock price crash,explains the transmission chain of institutional investors affecting the risk of stock price crash from the perspective of individual supervision,and further explores the impact on the risk of stock price crash from the perspective of the heterogeneity of institutional investors.On this basis,using the 2011-2020 fund annual holding data,build fund network,further from the perspective of group supervision to explore the influence of institutional ownership on share price crash risk,trying to explore the fund network density and fund network centrality in institutional ownership of share price crash risk in the process of regulatory role.This paper adopts a sample regression and shortened time window to prove the robustness of the results.Finally,this paper puts forward specific policy suggestions according to the research conclusions.The paper found that:(1)the proportion of institutional shares plays a significant role in promoting the risk of stock price crash.The higher the proportion of institutional shares,the higher the risk of stock price crash,and the risk of small institutional investors;(2)the higher the degree of the marketization of the capital market,the higher the effect of the risk of institutional shares;and(3)Compared with non-state-owned enterprises,the risk of institutional stock price crash increases in state-owned enterprises.Whether companies with low information disclosure or companies with high information disclosure,the risk of stock price collapse will increase with the increase of institutional investors’ shares.This paper systematically combs the relevant literature between institutional investors’ shareholding and the risk of stock price crash,and on this basis further discusses the impact of institutional investors and fund network on the risk of stock price crash.From this point of view,this paper has certain practical significance for strengthening the supervision and risk prevention of China’s capital market,and enriching the investors’ trading strategies.