Political Appeal,Social Responsibility and Listed Banks’Risk of Price Collapse

Using the commercial banks listed in China during the 2007-2016 period as samples,the paper empirically tested the impact of bank senior officials’political appeals on the risk of the banks’stock price collapse and examined the intermediate effects of these banks’social responsibilities.The study finds that the risk is higher with banks featuring officials having political connections than those without,but on the contrary,the risk is lower with banks featuring officials’political promotion than banks that do not have such features.The social responsibilities of banks have obvious inhibitory effect on the risk.With this effect,the positive impact of senior officials’political connections on the future risk is considerably lowered while the negative impact of the officials’political promotion on the risk is noticeably increased.