The Research On The Influence Of Accounting Information Quality And Product Market Competition On The Stock Price Synchronicity

Chinese securities market is usually characterized as a policy-oriented market,and the stock price synchronicity is serious.With the constant improvement of our market economic system and a large inflow of foreign capital,the influence of product market competition on enterprise development can't be ignored.As the internal and external governance variables,the accounting information quality and product market competition attracted many scholars attention,but their research conclusions are contradictory.This maybe ignore that the internal governance mechanism is endogenous in the external environment,and they are inevitably influenced each other.This paper bases on the effective market theory,behavioral finance theory and information asymmetry theory,analysis the relationship among accounting information quality,product market competition and stock price synchronicity.Then,this paper uses the principal component analysis and the least square method to test the impact of accounting information quality,product market competition and the relationship between the two on stock price synchronicity by taking the Shanghai and Shenzhen A-Share listed companies in 2010-2015 as the research samples.The empirical results show that:First,the quality of accounting information is positively correlated with stock price synchronicity,this implied that the internal undisclosed information is an important source of information for stock price synchronicity.Second,the product market competition is negatively correlated with stock price synchronicity,that is,the more intense the product market competition,the lower the stock price synchronicity.Third,the positive correlation between the quality of accounting information and stock price synchronicity decreases with the increase of product market competition,that is,the effect of product market competition on stock price synchronicity is more remarkable in the industry of poor accounting information quality.The conclusion provides a new perspective to understand the inconsistent conclusions between the quality of accounting information and the stock price synchronicity,and provides a new policy suggestion for the regulatory departments to establish the sub-sectors and sub-regions rule for the disclosed information.