Research On The Impact Of Managerial Ability On Idiosyncratic Volatility From The Perspective Of Corporate Information

One of the important functions of the stock market is to improve the efficiency of resource allocation and realize the docking of fund demand and supply.China's stock market affects the fate of countless companies.What is worrying is that the stock market is always in the state of insufficient effectiveness.However,the idiosyncratic fluctuation of stock price restricts the fund circulation function of the stock market.With the advent of the information age,company managers are increasingly concerned by the outside world.Can competent managers regulate corporate information to alleviate the idiosyncratic fluctuation of stock price and bring positive influence to the development of China's stock market and real economy?This paper studies from both theoretical and empirical perspectives.In terms of theoretical analysis,according to the theoretical basis,relevant literature and the actual situation of China's securities market,this paper draws two conclusions: private information trading promotes the idiosyncratic fluctuation of stock price,and competent managers can improve the quality of corporate information disclosure.On the basis of clarifying the relationship between private information transaction,information disclosure quality and corporate transparency,this paper further summarizes the mechanism that managers with strong ability can reduce the idiosyncratic fluctuation of stock price by improving corporate transparency.In terms of empirical analysis,this paper selected Shenzhen A-share main-board listed companies from 2003 to 2017 as samples,and conducted three empirical tests in turn according to the above theoretical analysis: multiple linear regression of the volatility of stock price on the price drift after earnings announcement;The orderly logit model test of management ability to Shenzhen stock exchange information disclosure evaluation score;The managerial ability to influence the idiosyncratic volatility of stock price through corporate transparency is tested by the mediating effect model.In order to strengthen the robustness of the empirical results,PSM,2SLS and DEA methods were used for endogenous treatment and robustness test in this paper,and the results were still significant.The main conclusions of this paper are as follows :(1)private information trading promotes the idiosyncratic fluctuation of stock price.Private information enters stock price ahead of schedule,aggravating the idiosyncratic fluctuation of stock price and reducing the price drift after earnings announcement.(2)competent managers can improve the quality of corporate information disclosure.Corporate governance mechanism has a certain screening effect on the ability of managers,and managers with strong ability are more aggressive.(3)competent managers reduce the idiosyncratic fluctuation of stock price,while corporate transparency plays an intermediary role.The information released by highly competent managers can reflect the real situation of the company so as to improve the corporate transparency.The improvement of the corporate transparency reduces the space for private information arbitrage and consequently reduces the idiosyncratic volatility of the stock price in the future.According to the research conclusion,this paper puts forward some policy Suggestions: first,the regulatory authorities should strengthen the information disclosure management of listed companies;Second,the listed company shall set up a management capability evaluation system;Third,investors should strengthen the ability to interpret information.