Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27–29, 2023, Tianjin, China

Research Article

Research on the Impact of Institutional Investor Co-ownership on Stock Price Crashes

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  • @INPROCEEDINGS{10.4108/eai.27-10-2023.2341966,
        author={Guangqiang  Han and Yixin  Hang},
        title={Research on the Impact of Institutional Investor Co-ownership on Stock Price Crashes},
        proceedings={Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27--29, 2023, Tianjin, China},
        publisher={EAI},
        proceedings_a={ICEMBDA},
        year={2024},
        month={1},
        keywords={institutional investors; joint shareholding; stock price crash risk; governance effects},
        doi={10.4108/eai.27-10-2023.2341966}
    }
    
  • Guangqiang Han
    Yixin Hang
    Year: 2024
    Research on the Impact of Institutional Investor Co-ownership on Stock Price Crashes
    ICEMBDA
    EAI
    DOI: 10.4108/eai.27-10-2023.2341966
Guangqiang Han1, Yixin Hang1,*
  • 1: Bohai University
*Contact email: 2022014043@qymail.bhu.edu.cn

Abstract

The phenomenon of co-ownership by institutional investors has become more common in capital markets, and academics have begun to explore the impact of this phenomenon on enterprises. Based on the panel data of A-share listed non-financial industries from 2010 to 2022, this paper empirically analyzes whether the impact of institutional investors' joint shareholding on stock price crash risk is a collusion effect or a governance effect.The results show that the joint holding of shares by institutional investors can exert a governance effect and significantly reduce the risk of corporate stock price collapse.Further, after passing the robustness tests such as Heckman's two-stage regression and substitution variables, the conclusion still holds. This paper provides a new empirical basis for the governance effect of institutional investors' joint shareholding, and expands and deepens the research on the influencing factors of institutional investors' joint shareholding on the risk of corporate stock price crash.