Abstract

This paper uses linear regression method to discuss the influence of enterprise risk taking on stock price crash risk and the regulation effect of product market competition on the relationship between them. The empirical results show that corporate risk taking is significantly positively correlated with stock price crash risk at 1% level. On average, the risk of stock price crash increases by 0.07% for every 1% increase in corporate risk taking. Product market competition has a positive regulating effect on the relationship between them. This paper plays a certain role in improving the supervision efficiency of capital market, strengthening investor education, enterprise risk management and market value management.

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