This study conducted a profound analysis of the impact of external corporate governance, focusing on the characteristics of institutional investors, on stock price crash risk. A total of 21,642 annual sample observations from the listed companies in China’s Ashare market from 2004 to 2021 were selected as the research data. The results showed that the increase in shareholding ratio of institutional investors among the shareholders of listed companies significantly increased the risk of a stock price crash. Moreover, a higher stability among institutional investors correlated with a higher inclination among companies to conceal negative news, thus increasing the risk of a stock price crash. However, herd behavior among institutional investors did not impose a significant impact on the stock price crash risk among the overall samples. In listed companies with qualified foreign institutional investors holding shares, institutional investors increased the risk of stock price collapse and exacerbated the crash risk of stock prices. The results challenge the role of institutional investors as “supervisors” and provide new evidence for research on the influence of institutional investors in the capital market.経営と経済, 103(4), pp.21-72; 2024departmental bulletin pape
