Research On The Influence Of The Third Party Institutional Information On Stock Price Feedback Effect

Chinese securities market is currently facing profound changes.The diversification of pricing logic and pricing power improves the status of stock price informativeness.For example,policies such as ―Securities Margin‖ and―Shanghai-Hong Kong Stock Connect‖ are important attempts to improve the operation efficiency of the stock market by using stock price information.Listed companies and investors are the core participants in the formation and dissemination of stock price information.Information feedback has b ecome the key to the study of the operation mechanism of capital market.Focusing on the stock price feedback effect,this paper investigates how the third-party organization information affects investors and managers,expands the understanding of stock pr ice information discovery,transmission and trading,and provides theoretical support for how to improve the effectiveness of Chinese capital market.Firstly,this paper combs the literature on stock price feedback and the third-party organization information.This paper introduces in detail three stages of stock price informativeness research development,from efficient market theory to traditional price informativeness theory,and finally to stock price feedback effect theory based on investment-Tobin Q framework.What is more,this paper combs literature a on the impact of three third-party organization information,namely securities analyst,corporate social responsibility and credit rating,on companies and capital markets,which provides theoretical su pport for the research on the third-party institutions information and stock price feedback effect.At the same time,this paper simulates the whole process of stock price feedback effect through the model,and verifies the important role of third-party institutional information in promoting stock price feedback.Then,based on these three important third-party institutions informatin,this paper makes three empirical studies.Firstly,this paper investigates the effect of securities analysts on the company’s stock price feedback effect.The empirical results show that the coverage of securities analysts can improve the information environment of the stock market,squeeze in informed traders,improve the company’s governance level,improve the management’s market learning motivation,and finally enhance the stock price feedback effect.Then,further research shows that th e impact of securities analysts on stock price feedback mainly comes from informed trader channel.At the same time,by introducing the heterogeneity of firms and industries in ―information preciousness‖,this paper find that analysts influence stock price feedback effect by providing information to the market.Secondly,this paper analyzes the impact of social responsibility rating on the company’s stock price feedback effect.The results show that social responsibility rating can reduce corporate risk and make informed traders squeeze into the capital market,so as to enhance the feedback effect of stock price.Then,it further verifies that the impact of social responsibility rating on stock price feedback is mainly based on informed trader channel.At the same time,through sub sample regression,it is finded that the risk mitigation mechanism is the main mechanism of social responsibility rating affecting the stock price feedback effect.Thirdly,this paper analyzes the impact of credit rating adjustment on the company’s stock price feedback effect.The results show that credit rating adjustment will increase the motivation of management’s market learning,make informed traders―squeeze into‖ the stock market,and enhance the company’s stock price feedback effect.In addition,the asymmetric impact of credit rating adjustment is verified on the stock price feedback.Then,through two-stage regression,we verify that the credit rating adjustment based on the informed trader channel affects the company’s stock price feedback.At the same time,this paper studies the influence mechanism of credit rating adjustment from the perspective of inform ation demand and supply.Finally,based on the results of model and empirical verification of the impact of third-party institutional information on stock price feedback effect,this paper puts forward relevant policy suggestions for third-party institutions,companies and capital markets.