Major Shareholders’ Reduction and the Risk of Stock Price Crash

This paper takes China Shanghai and Shenzhen A-share listed companies from 2007 to 2021 as samples empirically test the impact of major shareholder reduction on risk stock price crash. finds that shareholders promotes crash companies, is, compared with without shareholders’ reduction, is higher, this conclusion still holds after controlling conservative factors. Further examination shows shareholder’s manipulation information has an crash, more obvious in state-owned enterprises, non-high-tech enterprises bull market period areas low investors.