Boundary Conditions of Institutional Investors' Impact on Stock Price Crash Risk

Institutional investors are central participants in the capital market, and stock price crash risk is directly tied to the stability of that market. Existing studies mainly focus on how investors from institutions influence stock price crash risk, yet few studies summarize the boundary conditions under which this influence operates. This paper systematically reviews these boundary conditions from three dimensions: institutional investors' own heterogeneity, firms' own characteristics, and the external market and institutional environment. The literature review results indicate that under different boundary conditions, there are pronounced differences in the direction of institutional investors' impact on stock price crash risk (inhibition or exacerbation), as well as the strength of various mechanisms of influence. Finally, this paper identifies future research directions related to multi-boundary interaction effects and the ongoing reform of China's capital markets, providing a literature basis for deeply understanding the heterogeneous role of institutional investors and improving capital market regulation.