Research On The Relativity Between Equity Structure, Earnings Management And Stock Price Synchronization

Stock price synchronicity refers to the stock market trend presented consistent with the overall market trend, or most of the stock on stock market keep up or down together. Chinese securitymarkethavethe same performance as discussed.Stocks on the same market, the same industry, and the same plate have the same performance.One or more leading shares led other shares to pull up, as long as they aregiven the same “concept” by investors, no matter how bad the companys’ fundamental informationare. Such stock markets will no doubt drop the role of the stock price to a lower level, stock prices should reflect all information of the listed company, but this phenomenon hindered the other information which should be incorporated in the share price, allowed only a small part of the information transfer. The concept of stock price synchronicity can be a good measure with the stock rise and fall, help related scholars research out of the way to solve the problem and the corresponding countermeasures. This article fully considers some unique characteristics of China’s securities market, such as the state-owned enterprise background of listed companies is clearly a dominant.And combine of foreign literatures, exploring the relationship of ownership concentration, equity balance degree and nature of shareholders of listed company between the degree of earnings management, and the impact on the stock price synchronicity.This article uses the 2005-2014 China’s Shanghai and shenzhen A-share listed company financial data as research samples, discusses the equity agency and the degree of earnings management of listed companies on the impact of stock price synchronicity, and drew the following conclusions. First, the degree of ownership concentration and earnings management of listed companies has significant positive correlation, the degree of ownership balance and earnings management has significant negative correlation, the first big shareholders of state-owned background perform more positive than non-state-owned holding listed company with earnings management. Second, through to the paper about degree of earnings management and stock price synchronicity found that both have significantly positive correlation, by combining the research conclusion about ownership structure and earnings management, this paper concluded that equity concentration and state-controlled background listed companies have significantly positive influence on the stock price synchronicity, and equity balance degree has a significant negative effect on stock price synchronicity.