A Study of stress-resistant institutional investors ' Shareholding and Corporate Risk-Taking Based on Equity Liquidity

Xiang Li; Zixuan Chen; Pengchong Li

doi:10.54097/hbem.v8i.7271

Authors

Xiang Li
Zixuan Chen
Pengchong Li

DOI:

https://doi.org/10.54097/hbem.v8i.7271

Keywords:

Stock Liquidity, Stress-resistant Institutional Investors, Corporate Risk-Taking, Corporate Governance.

Abstract

This paper analyzes the relationship and impact of stress-resistant institutional investors on institutional investors' shareholding on corporate risk-taking, using a sample of A-share listed companies in Shanghai and Shenzhen from 2011 to 2020. The research shows that the proportion of stress-resistant institutional investors' shareholding is negatively related to the level of corporate risk-taking. On this basis, the paper examines the moderating effect of stock liquidity on the level of stress-resistant institutional investors and corporate risk-taking. The study finds that stock liquidity negatively modifies the relationship between stress-resistant institutional investors and corporate risk-taking levels. This result shows that stock liquidity enables stress-resistant institutional investors to participate in corporate governance more actively, thereby weakening their role in reducing corporate risk-taking levels.

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