Research On The Influence Of Accounting Conservatism On The Synchronization Of Stock Prices

Accounting conservatism,one of the important accounting information quality requirements,is clearly defined as "should maintain due caution,should not overestimate assets or income,underestimate liabilities or expenses".Moderate accounting conservatism is contributed to alleviate information asymmetry and reduce earnings management behavior.At present,China's capital market is still an emerging market.Stock prices are more affected by market factors,which cannot comprehensively and accurately reflect the characteristics of companies.Therefore,the study enriches the research on influencing factors of stock price synchronization,which is conducive to the optimization of information efficiency of capital market.In this background,this paper combines with the external governance factors to introduce the perspective of media attention.Literature review and comments has carried on the related researches.Then by using efficient market theory,information asymmetry theory,principal-agent theory,regulation theory and behavioral finance theory,this paper constructs the theoretical logic of accounting conservatism,media attention and stock price synchronization,proposing corresponding assumptions.Then,using the data of a total of 3356 listed companies in Shanghai and Shenzhen from 2013 to 2018,this paper conducts an empirical study on the interaction between media attention,accounting conservatism and stock price synchronization,through constructing the nonequilibrium panel data model and carry empirical analysis of the whole sample and the grouped sample,exploring the interaction between media attention and accounting conservatism.The results show that accounting conservatism,media attention and stock price synchronization are significantly negatively correlated,more trait information is integrated into the stock price and reducing stock price synchronization,supporting “information efficiency view”.At the same time,media attention and accounting conservatism have substitution effect on stock price synchronization.Further research finds that,firstly,accounting conservatism has a significant negative effect on stock price synchronization in both high and low information transparency environments,and when information transparency is low,accounting conservatism and media attention have a substitution effect on stock price synchronization.Secondly,accounting conservatism has a significant negative effect on the synchronicity of stock price whether there are any irregularities or not.For enterprises with illegal behaviors,the effect of accounting conservatism and media attention on stock price synchronization has a substitution effect.Thirdly,for non-state-owned enterprises,accounting conservatism is negatively correlated with stock price synchronization,while for state-owned enterprises,accounting conservatism has no significant impact on stock price synchronization.Finally,on the basis of empirical results,this paper puts forward suggestions on optimizing information efficiency of capital market from four aspects: corporate governance,media governance and investor decision-making,regulatory system.