Institutional Investors Ownership、Managerment Power And Stock Price Synchronicity

Stock price synchronicity refers to the phenomenon that most of the stock prices rise of fall simultaneously,namely the individual stock price along with the change of the average market price changes occur in the same direction over a period of time.The volatility of stock price is mainly influenced by three aspects, one is the market information, the second is the industry information, the third aspect is the company’s quality information, the first two aspects are not the real reason what truly effect stock price is the last one.The characteristics of the stock market in China is the little volatile of share price,the low efficiency of capital market information and high stock price synchronicity with the stock price.At the same time,the phenomenon of listed companies management’s power rent-seeking is widespread.Management in order to seek more and more private benefits, so they like to choose accounting policy which bebefits to maximize their own interests.The result is the low quality of accounting information.Management in order to be able to exert control on compensation contracts, they will use the power to manipulate the accounting information.The greater the power management control of enterprise resources, opportunistic behavior of management will be more serious.Management in order to get their own interests, they would like to use power rent-seeking, impose control on accounting information.In order to meet the requirements of the assessment index through earnings manipulation of the accounting performance.Company quality information is the main factor which affects the stock price synchronicity, wo want to know that the supplier of company’s quality information how to affect the quality of company’s information, and in turn, the influence path of the information which is passed to the market to the relatinship of the management power and stock price synchronicity.Combined with the foreign research, this paper stands on corporate governance characteristic of China, in order to reduce the stock price synchronicity research as a starting point.First of all, we study the affection of management power on stock price synchronicity, then join the stock of institutional investors to test the relationship between stock price synchronicity and the management power.In this paper, we use the data of Shenzhen A-share listed companies over 2011-2014 as research samples.And get the following conclusions.The phenomenon of Stock price synchronicity in China’s Shanghai and shenzhen listed companies is relatively high, the average is 42%, but compared with the previous year, the situation is better the percentage is 0.295 in 2014;Management power is positively related to the stock price synchronicity.It is namely that with the improvement of management power, they have more motivation to do opportunistic behavior.So the quality of information is low and improve the stock price synchronicity.With the increase stock of institutional investors holds, on the one hand, the management can be effective oversighted and improve the quality of information.On the other hand, when the managemen act as opportunism behavior,the institutional investors can take advantage of information to contol tne mangement.It makes the company information can be more easily accepted by investment and increases the information content of stock price, alleviates the information asymmetry caused by management of the power,so investors can make rational decisions. The above conclusions can enrich the study of the factors which affects stock price synchronicity from the perspective of management power and provide inspiration and advice of improving the efficiency of the securities market.