| Stock Price Synchronicity refers to the relationship between the stock price change and average price change of the stock market,also known as the phenomenon “rise or fall together” of stock price.The basic function of the capital market is to realize the optimal allocation of resources by using the stock price fluctuation,therefore,the stock price fluctuation of the capital market has been caused the strongly explore by scholars.At present,the domestic and foreign research is mainly about the impact of corporate governance mechanism and firm environment on stock price synchronicity.Few scholars,from the media reports perspective,analyze and explore the relationship between the media reports and stock price synchronicity.So,in a country with transition and new type,will media reports have an impact on stock price synchronicity? Through which aspects to impact? And how does the relationship between media reports and stock price synchronicity change under environmental uncertainty? The discussion of these problems is of great significance to the optimal allocation of capital market.Aiming at the above problems,this paper combines theoretical analysis with empirical research,and conducts a series of research and analysis.Based on the data of media reports of non-financial listed companies in China in 2003—2014,the paper analyzes the relationship between the media reports and the stock price synchronicity.In the elimination of financial,insurance,lack of financial data,as well as the trading days less than 200 days of stocks,A total of 17 144 initial samples were obtained.After controlling for a series of factors that may affect the company’s stock price synchronicity,the paper empirically tests the relationship between them.The conclusion of this study shows that there is a significant negative correlation between reports or not(Media),the number of media reports(Num),and the stock price synchronicity.It Shows that the more the number of media reports,the lower the price synchronization:(1)when the media play the role of information intermediary,the more reports that listed companies accept,the more characteristic information on the level of the company will be Included in the stock price,thus reducing stock price synchronicity;(2)media external corporate governance can effectively protect the rights and interests of investors,the more trust company information the transaction,thus reducing stock price synchronicity.The more positive the media reports(Tone),the more reduce on the level of trust of investors,which means less information is Included in the stock price.Accordingly,the more positive that media reports be,the higher stock price synchronicity would be.The media reports of listed companies with positive tone may be due to the existence of "close relationship" between the media and the listed companies.On account of the capital market of our country is still in the development phase,the regulatory authorities pay less attention on the behavior between media and listed company.Consequently,the media plays the role of “advocates” rather than independent “the information intermediary”,leading to the phenomenon that investors adopt an attitude of distrust when they face to the media reports of positive attitude.Therefore,less specific information of listed company was included in the stock price,which led to the stock price synchronization increase.In summary,the improvement of the degree of media helpintegrate the company level information into stock price,leading to stock price synchronicity reduced.The more positive the media reports,the more that investors do not trust the news,on the contrary,stock price synchronicity increases.Further studies show,In the case of environmental uncertainty,the degree that media reports reduce the stock price synchronicity weakened.It indicate that the higher degree that environmental uncertainty be,the more weak that the function of media reports impact on stock price synchronicity will be.When the external environment uncertainty degree increase,it will cause serious information asymmetry.Which means that investors can not get more information about the company through the media reports,less information on the company level was Included in the stock price,the stock price synchronicity increases.In addition,the higher the degree of environmental uncertainty is,the greater the risk of the company will be.Thus,Investors will reduce the reliance on the media the report,the media effect will reduce,which leads to the stock price synchronization increase.This paper also makes a research on the influence of the internal mechanism of corporate governance on the relationship between the media and the synchronization of stock price,combination of two duties(Dual)and executive shareholding ratio(Exhold)was taken as the substitute variables of internal corporate governance mechanisms for further analysis.Both combination of two duties and executive shareholding ratio will strengthen the negative correlation between media reports and stock price synchronicity.Compared to separation of two duties,agency cost and information cost of combination of two duties is lower,and it can improve the leadership decision-making efficiency,reduce leaders blame each other,which indicates that combination of two duties is conducive to strengthening the company’s internal governance mechanism.The internal governance mechanism and media reports,the external governance mechanism of company management,complement each other.The management operator become the “housekeeper”,the degree of information asymmetry reduce,both of them would weaken the phenomenon “rise and fall together” of stock prices and reduce the stock price synchronicity.According to effect of benefit synergies,the higher the shareholding ratio of top managers is,the more closely the operator and the manager are linked.With the risen of the shareholding ratio of the senior management,Disclosure of information integrity and unbiased would be strengthen,it would prompte more information of the companyto integrate into the stock price.Therefore,the executive stock ownership can strengthen the negative correlation between the media reports of listed companies and the stock price synchronicity.In this paper,we mainly study the relationship between the media reports of listed companies and stock price synchronicity.We divided this article into five parts: The first one is the introduction of the full text,which mainly introduces the research background and significance of this paper,the analysis of the relevant literature,the writing ideas,research methods and the basic framework of the paper.The second part gives a detailed definition of the media reports and the stock price synchronicity,and expounds the theoretical basis of media reports and stock price synchronization.The third part is to define the sample selection and data sources,select the relevant indicators of media reports,stock price synchronicity and corporate governance to define variables,put forward the research hypothesis and establish the empirical model.The fourth part is the analysis of the empirical results,analysis of the impact of media reports on the stock price synchronicity,further study of the impact of environmental uncertainty on the relationship between the two,and the robustness test.The last part is the research conclusion,the research proposal,the research question and the prospect. |
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