With the development of behavioural finance, investor sentiment is often used to explain the stock market anomalies. And then the influence of investors’ behaviour on the stock market can be studied from the perspective of human emotion. When the stock market performs well, investors tend to ignore the intrinsic value of stocks and excessively chase price growth. As a result, the stock price seriously deviates from its intrinsic value. Once the stock prices gradually return to their intrinsic value, investors’ income will drop sharply in a short term. At that time, the pessimism of irrational investors spreads rapidly in the stock market, which causes the competitive selling of stocks and finally the rising risk of stock price crash. When investors are optimistic or pessimistic, their reaction to market news is also asymmetric. Therefore, it is necessary to study the impact of investor sentiment on stock price crash risk from holistic and heterogeneous perspectives, respectively. This study aims to investigates the effect of investor sentiment on future stock price crash risk. First, this study tries to examine the stock price crash risk behaviour across price markets. Second, we try to investigate the relationship between investor sentiment and stock price crash risk. In this paper, we aim to propose a new index of firm-specific investor sentiment and examine the relationship between firm-specific investor sentiment and crash risk, which adds to the recent stream of research on the economic consequences of investor sentiment. Finally, we investigate whether institutional investors contribute to the stock price crash risk. Our findings provide valuable insights to companies, individual investors, fund managers and financial regulators into how investor sentiments influence stock price crash risk.