Research On Media Concern,Internal Control And Stock Price Synchronization

In the capital market,How to achieve effective allocation of resources is an important topic that scholars have been concerned about.The synchronization of stock price is the correlation between the change of stock price and average market change.The level of stock price synchronization reflects the amount of company information into the stock price.The lower the price synchronization,the stock price contains more information on company characteristics,the higher allocation efficiency of the market resources.While China's stock price synchronization compared to some developed countries has been relatively high.Therefore,how to reduce the synchronization of stock prices and improve the efficiency of resource allocation is an urgent problem to be solved.As the transmission of information,the role of the media in the capital market is becoming more and more important.Media as a medium of information transmission has played an important role on corporate governance,asset pricing.The more media attention,the more information about the company,investors will be based on information reported in the media to invest,affecting the synchronization of stock prices.Therefore,the media attention to listed companies will inevitably affect the price of the stock.At the same time,the quality of internal control of listed companies also to pass their own information to the outside world.So they can attract more investors.On the contrary,when the quality of internal control of enterprises is poor,managers may be reluctant to disclose too much business information.Therefore,the quality of internal control may affect the disclosure of information,thus affecting the company's stock price.This phenomenon result that the stock price contains the company's information is different,and affecting the synchronization of stock prices.However,there are few literatures study the relationship between media attention and stock price synchronization,and few scholars have studied the synchronization of stock price from the perspective of internal control.Based on the institutional background of China,this paper studies the relationship between the quality of media attention and the quality of internal control and the synchronism of stock price by combining the theory with the empirical method.This paper mainly includes the following parts.The first part is the introduction.This part mainly introduces the research background,the research significance,the research method and the frame,and puts forward the innovation point of this article.The second chapter is literature review.According to domestic and foreign scholars,this part reviews the research results about the media attention,the internal control,stock price synchronization,and then comment the review of the literature.The third chapter is theoretical analysis and hypothesis.This chapter is divided into relevant theoretical and theoretical analysis and hypothesis.In the relevant part of the theory mainly elaborated the efficient market hypothesis,information asymmetry and signal transmission,and transaction cost.In the part of theoretical analysis and hypothesis,this paper puts forward the research hypothesis of media attention,internal control and stock price synchronization on the basis of relevant theoretical analysis.The fourth chapter is research design.In this chapter,we will select the samples needed for empirical study,eliminate the samples that do not meet the conditions,and then select the variables needed to define this model and establish the regression model.The fifth chapter is empirical analysis.This chapter mainly includes descriptive statistics,correlation analysis and analysis of regression results,and the results of the regression of the robustness test.The sixth chapter is conclusion and suggestion.This part draws the conclusions of this paper based on the empirical results,and makes recommendations based on the conclusions.Finally,the shortcomings of this paper,and look forward to the future direction of further research.This paper uses the Chinese A-share listed companies from 2010 to 2014 as a sample to explore the relationship between media attention,internal control and stock price synchronization,and draw the following conclusions.First,there is a significant negative correlation between media attention and stock price synchronization.It shows that media attention can promote the transmission of information of listed companies,reduce the synchronization of stock price and improve the efficiency of market resources allocation.Second,the quality of internal control is significantly negatively correlated with stock price synchronization.Improving the quality of internal control of listed companies can also reduce the synchronization of stock prices and play an active role in the allocation efficiency of market resources.Third,in the enterprises which have different quality of internal control,media attention to the role of the stock price synchronization is differences.At the same time,in the further analysis of the article found that different nature of the property rights of enterprises,the impact of internal control on the synchronization of stock price differences.Compared with the state-owned enterprises,the quality of internal control of non-state-owned enterprises has more significant impact on the price synchronization.Under the new situation,the conclusion of this paper has certain reference value for how to reduce the synchronization of stock price and improve the efficiency of market resource allocation.Empirical research on China's A-share non-financial listed companies shows that strengthening the media's attention to listed companies can reduce the synchronization of stock price and improve the quality of internal control of the company.This shows that at the present stage China can combine the external and internal governance mechanisms to improve the market information disclosure system,enhance the transparency of enterprise information and improve the quality of information disclosure to reduce the synchronization of stock prices and improve the market allocation of resources.