An Empirical Study Of The Internal Control、Information Transparency And Stock Price Synchronicity

Stock price synchronicity refers to the phenomenon that most of the stock prices rise of fall simultaneously during a certain period of time from a macro perspective. From the microscopic perspective, its meaning is the co-movements of stock market. Market, industry and firm-specific information all have effect on stock prices, but what truly effect stock price is the last one. China’s stock market has long been remaining high stock price synchronicity with the stock price contains little company information and does not truly reflect the real value. This phenomenon will lower the effectiveness of the securities market and is disadvantage of the optimal allocation of market resources. In 2011, 68 companies listed in domestic and overseas at the same time and 216 internal control pilot companies are enforced to implement internal control standard system. In 2012, the ministry of finance and CSRC jointly issued a notice to further expand the enforcement of the system of internal control scope the main board state holding listed company, in January 2014, the CSRC and the ministry of finance jointly issued the annual general provisions on the internal control evaluation report. It seems that our country’s internal control system is increasingly perfect. So, does it have impact on stock price synchronicity of China’s securities market ?What is the impact?What is the influent factors of Chinese stock price synchronicity?How to reduce the stock price synchronicity of China ? According to the existing literature, information transparency and investor-protection are factors that result in high stock price synchronicity in emerging markets. To satisfy the accounting information user’s needs and protect the interests of investors, we need to make some system to protect the interests of the accounting information users and investors from the violation, and the effective institutional arrangement is the internal control system. In this paper, based on the Chinese corporate governance characteristics, in order to reduce stock price synchronicity research as a starting point, we demonstrates that how the internal control quality affect stock price synchronicity, and then test the mainline of the conductive effect of information transparency between the internal quality control and stock price synchronicity.In this paper, we use the data of Shenzhen A-share listed companies over 2011-2013 as research samples, use internal control index measured by Di Bo enterprise risk management technology co., LTD in Shenzhen, on the basis of mechanism analysis and theory of inductive of the internal control and information transparency impact on stock price synchronicity, use normative analysis, by constructing index of stock price synchronicity, research on the internal control information transparency, investor protection and the conduction effect of stock price synchronicity, and get the following conclusions.(1)China Shenzhen listed company’s stock price synchronicity lever is higher, average around 38%, but according to previous research in 2011, presents the evident in the downward trend down from 0.450 to 0.295.(2)The internal control quality has a significant effect on stock price synchronicity, the higher the quality of internal control, the lower the stock price synchronicity.(3)The internal control quality has a significant effect on information transparency, the higher the quality of internal control, the higher the information transparency.(4)Join information transparency to the regression model of the internal control quality and stock price synchronicity then find, the quality of internal control and the information transparency of the coefficient is significant, but symbol of a*b and c are opposite, resulting in inhibiting effect or inconsistent intermediary effect(mediation effect in contrast to the direct effect).Above conclusions can enrich the study of the factors affecting stock price synchronicity from the perspective of corporate governance, to advice on our internal control construction and improve the efficiency of the securities market.