Investigating the Impact of Management Ownership on the Crash Risk of Stock Price Future in Firms

Management ownership and more information by the company's management and the willingness of managers to disclose asymmetric news leads to a future risk of falling stock prices. The fall in stock prices has led to a sharp drop in returns. The purpose of this study is to investigate the effect of management ownership on the risk of future stock price collapse in companies. For this purpose, the data of 115 manufacturing companies accepted in Tehran Stock Exchange during the years 1390-1395 were analyzed. The result of estimating research models using combined data shows that there is a direct and direct relationship between management ownership and the risk of falling stock prices, that is, with the increase of management ownership, the risk of falling stock prices increases. In addition, the cost of representation affects the relationship between managerial ownership and the risk of falling stock prices. This means that the impact of managerial ownership is on the increased risk of future stock price collapse in companies with higher representation costs