The Empirical Research On The Interactive Relationship Between The Enterprise’s Micro Blog Information Quality And Stock Price Synchronicity

One of the main features of price of failure is the stock price synchronicity. Financial experts believe that in an efficient market, stock price changes reflect the characteristic information of a company or even the whole market, thus should not keep synchronous with the market fluctuations. Stock price synchronicity can be used to evaluate the quality of information one individual stock price have contained. The trend of stock price synchronicity clearly shows that stock prices fluctuate synchronously with the market as a whole. And that means stock prices reflect information more at the market level, containing little characteristic information at the company level. This phenomenon deprives stock prices of the guiding role towards investors. According to the research of numerous scholars all over the world, once the price disclosure mechanism has been improved, investors will be able to make their own rational decision based on the information they have, thus reduce the stock price synchronicity. The level of price disclosure and resources acquisition also affect stock price directly.With the rapid development of information technology, Internet has become a major means of acquiring and exchanging information. As a popular platform of getting, sharing and exchanging information nowadays, Micro Blog can not only provide a large number of real-time news, reviews and conversations, but also be used as the carrier of communication. Official Micro Blog is the most authoritative information release channel of enterprises, which can be used as the platform for releasing information like macroeconomic background, industrial regulations, operating conditions and recreational activities. Followers can review, forward or collect information based on their own understanding and the reliability of information. But the convenience of internet and the diversity of users make the quality of information via internet rather uneven. In consideration of the convenience of users to make objective and fair assessment of network information, an evaluation index system is needed to build, providing the basis for users to make rational decisions.The Shanghai 180 index components from January 1st 2010 to December 31st 2013 were selected as sample in this article. We used the R2 to measure levels of stock price synchronicity and found that even well-run companies can see obvious phenomenon of stock price synchronicity. Regarding the importance of information resources, we use the quality factor of official Micro Blog as the main explanatory variables, with the total number of followers and Micro Blogs, active days, number of comments and forwards as variables to build the index system. Evaluation of official Micro Blog was performed from the following three dimensions: attention, confidence and update frequency. In the meanwhile, in order to explain the level of stock price synchronicity, we also used company size, turnover rate and the Book-to-Market ratio as control variables to build the model.