Title: Internal Control Quality, Supply Chain Concentration and the Risk of Stock Price Collapse: The Empirical Evidence from Shanghai and Shenzhen A-share Listed Companies
Abstract: Based on the sample of A-share listed companies in Shanghai and Shenzhen from 2008 to 2018, this paper examines the influence of supply chain concentration on the risk of the stock price collapse, and the possible moderating effect of internal control quality on the relationship between supply chain concentration and stock price collapse risk. The results show that the higher the concentration of the supply chain, the higher the risk of stock price collapse. Internal quality control alleviates the promoting effect of supply chain concentration on the risk of stock price collapse. Furthermore, it is found that the positive correlation between the concentration of the supply chain and the risk of the stock price collapse is more significant in enterprises with excessive debt and a high concentration of executive power.