The Impact of Enterprise Annuity on Stock Price Crash Risk

With the aggravation of aging problem, it is practically significant to promote enterprise annuity and explore its economic consequence. Using Chinese A-share listed companies from 2008 to 2017 as sample, we find that enterprise annuity can significantly reduce stock price crash risk. Further analysis indicates that the negative impact is pronounced in the companies with lower managerial ownership, less independent directors, lower management power and better institutional condition. Our conclusions have proved that enterprise annuity can encourage employees to participate in corporate governance actively and thus reduce stock price crash risk.