Abstract
This paper examined whether different types of inquiry letters had effects on stock price crash risk. To measure the stock price crash risk, a model was built. Additionally, to study the effects, this paper used a fixed effects model based on the panel data from Shenzhen Stock Exchange and CSMAR database from 2014 to 2019. The results showed that during 2014 and 2016, inquiry letters about asset restructuring significantly reduced stock price crash risk; the risk of stock price crash may be lower when the company received more letters about asset restructuring. However, inquiry letters about regular report and others had no significant effects. During 2017 and 2019, inquiry letters about regular report significantly reduced the stock price crash risk. Similarly, the company’s stock price crash risk may be lower when the company received more letters about regular report. However, inquiry letters about asset restructuring and others had no significant impact. The research aimed to explain the role of different types of inquiry letters in the Chinese stock market through data analysis, which may provide suggestions to prevent stock price crash risk, eventually promoting the capital market's stable development.
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