关键词: 中小投资者, 法律保护, 股价崩盘风险, 中证中小投资者服务中心

Abstract: This paper investigates whether and how enhanced legal protection for minority shareholders affects future stock price crash risk using the pilot policy of CSISC. We find that after the pilot policy is implemented, the stock price crash risk of listed companies in the pilot provinces tends to decrease by 15.997% to 21.833% on average and this finding is robust to alternative specifications. The reduction in stock price crash risk is more pronounced for companies with greater agency conflicts between controlling shareholders and minority shareholders, higher litigation risk, and those located in better market and legal environments. Mechanism test shows that the implementation of the policy improves the quality of information disclosure and corporate governance, thereby reducing stock price crash risk. This paper sheds new light on improving the legal protection system for minority investors in China’s capital market, ensuring high-quality development of China’s capital markets, preventing systemic financial risks and promoting financial stability.

Key words: Minority Shareholders, Legal Protection, Stock Price Crash Risk, China Securities Investor Services Center (CSISC)