Model Analysis of TMT Heterogeneity, Management Selling and Stock Price Crash Risk

摘要

A large number of managers' selling in stock holdings will send "bad news" to the market, affecting investor sentiment. Using the stock trading data of management of A-share listed companies from 2011 to 2018 to construct regression model, we empirically analyze the relationship between management selling and the stock price crash risk, and also examine the moderating effect of top management team heterogeneity in the relationship between the two. In the model test, we found a significant positive correlation between the stock price crash risk and the managers' selling. The larger reduction' scale, the more obvious the negative signals it conveys, and the higher the stock price crash risk is. Further study found that the heterogeneity of educational and political background can significantly reduce the risk of the management selling, while the heterogeneity of professional experience can aggravate it. Our research has improved the model construction of the research on the relationship between top management reduction and stock price crash risk, which is of great significance to improve the construction of top management team, strengthen the management of the speculative behavior, and prevent the stock price crash risk. It also provides some reference on how to standardize the behavior of listed company executives, and maintain the stability of the market.