Internal control and stock price crash risk: from the perspective of major shareholders’ shareholding

DOI

10.2991/978-94-6463-272-9_27How to use a DOI?

Keywords

major shareholder shareholding; internal control; stock price crash risk

Abstract

Taking the listed enterprises in China from 2013 to 2021 as the research object, based on the mediating effect of the shareholding of major shareholders, the study is about the influence mechanism of internal control quality on the risk of corporate stock price crashes. the article talks about the influence mechanism of internal control quality on the risk of corporate stock price crashes. The results show that improving the internal control quality of listed companies is helpful to reduce the risk of stock price crash; High quality internal control reduces the risk of stock price crash by significantly increasing the shareholding of major shareholders. The results show that improving the internal control quality of listed companies is helpful to reduce the risk of stock price crash; High quality internal control reduces the risk of stock price crash by significantly increasing the shareholding ratio of major shareholders. The shareholding ratio of major shareholders has partial mediating effect. Based on the empirical results, (1) Enterprises may reduce stock price crash risk by adjusting the ownership structure; (2) The appropriate adjustment of equity structure tends to reduce the risk of stock price crash and thus maintain market stability.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ziyu Han
PY  - 2023
DA  - 2023/10/15
TI  - Internal control and stock price crash risk: from the perspective of major shareholders’ shareholding
BT  - Proceedings of the 2023 3rd International Conference on Financial Management and Economic Transition (FMET 2023)
PB  - Atlantis Press
SP  - 245
EP  - 252
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-272-9_27
DO  - 10.2991/978-94-6463-272-9_27
ID  - Han2023
ER  -