Research on the Impact of Institutional Investors on the Relationship between Corporate Risk-taking and Stock Price Crash Risk Based on the Moderating Effect Model

摘要

In this paper, we established a moderating effect model to analyze the impact of institutional investors on the relationship between the company's risk-taking and the risk of stock price collapse. Taking Chinese A-share listed companies from 2007 to 2019 as a sample, we find that institutional investors' shareholding has a significant negative moderating effect on the relationship between corporate risk-taking and stock price crash risk. On average, every 0.1% increase in institutional investors' shareholding, the impact of the company's risk-bearing level on the risk of stock price collapse will significantly decrease by 0.6%. This paper has some enlightenment for the government regulatory departments to formulate regulatory strategies, risk decisions of corporates and investment decisions of investors.