Internal control and stock price crash risk: from the perspective of major shareholders’ shareholding

Taking the listed enterprises in China from 2013 to 2021 as the research object, based on the mediating effect of the shareholding of major shareholders, the study is about the influence mechanism of internal control quality on the risk of corporate stock price crashes.the article talks about the influence mechanism of internal control quality on the risk of corporate stock price crashes.The results show that improving the internal control quality of listed companies is helpful to reduce the risk of stock price crash; High quality internal control reduces the risk of stock price crash by significantly increasing the shareholding of major shareholders.The results show that improving the internal control quality of listed companies is helpful to reduce the risk of stock price crash; High quality internal control reduces the risk of stock price crash by significantly increasing the shareholding ratio of major shareholders.The shareholding ratio of major shareholders has partial mediating effect.Based on the empirical results, (1) Enterprises may reduce stock price crash risk by adjusting the ownership structure; (2) The appropriate adjustment of equity structure tends to reduce the risk of stock price crash and thus maintain market stability.