Media Reports,Analyst Follow-up And Stock Price Synchronization Research

As a basis for judging the level of stock market pricing efficiency,stock price synchronization has always been the main research direction of scholars at home and abroad.Stock price synchronization mainly refers to the degree to which a single stock’s return and the market’s and industry-based market’s return have moved in the same trend.At present,there are two main views to explain the stock price synchronization:one is the view of information efficiency,which is explained as the high stock price synchronization mainly because there is little effective information on the characteristics of the company included in the stock price,resulting in low market pricing efficiency:The second is the view of irrational factors,which believes that the reason for the low stock price synchronization is that there are more noise or irrational factors in stock prices,and market pricing is relatively ineffective.Our country is an emerging market,and the level of stock price synchronization is higher than that of other countries.Therefore,this article mainly studies how to achieve the effect of changing the stock price synchronization and at the same time improve and increase the efficiency of stock market pricing.The media and analysts are not only the middle button between the market and investors,but also the role of the company’s external supervision.The effective information conveyed affects the stock price synchronization.The media can timely dig and report the information of the listed company concerned and pass it to investors.Investors’ stock trading enables the company’s effective information to be absorbed by the stock price,which can reduce the occurrence of information asymmetry.At the same time,it can supervise the company’s management to maintain good operations and make the stock price effective reflect company information.Analysts follow up listed companies,search for effective information about listed companies through field investigations,unannounced visits,etc.,extract and write analyst research reports,pass effective information to investors,and conduct reasonable supervision of corporate governance.Based on the concept of information efficiency,this article will study whether media reports and analyst follow-ups can play a role in conveying the company’s unique information to investors in a timely manner to achieve the purpose of reducing the stock price synchronization?Are there any links between media reports and the information delivered by analysts following up?This article adds two indicators for analyst follow-up to measure the influence of analyst follow-up on media reports that affect stock price synchronization.In order to better answer the above questions,this article first sorts out the relevant literature on stock price synchronization research according to different opinions and different influencing factors,expounds the relevant theoretical basis,and puts forward reasonable assumptions for media reports and analysts follow up.Based on the Shanghai and Shenzhen Ashare listed companies,the sample data from 2012 to 2018 adopts OLS regression to empirically study the effect of media reports and analyst follow-up on reducing stock price synchronization;Research shows that media reports and analyst follow-up can achieve the purpose of reducing stock price synchronization;Analyst follow-up weakens the effect of media reports on reducing the stock price synchronization,and the information transmitted by the media and analysts overlaps.It is further discovered that only when the number of media reportsis large and it is easier to obtain company information,analyst follow-up will weaken the media reporting reduces the effect of stock price synchronization.When the number of media reports is small and information is difficult to obtain,it is difficult for analysts to find effective information about the company’s characteristics.Choosing the method of measuring the synchronization of replacement stock prices,the method of calculating the number of replacement media reports,and the selection of manufacturing samples to conduct robustness tests on the results of the empirical part and the results of further analysis,the conclusions obtained are also valid.The media can effectively improve the information efficiency of the stock market by playing the role of information intermediary and external supervision,which is conducive for analysts to help investors distinguish the value differences between companies and improve the efficiency of stock market resource allocation.At the same time,this article puts forward relevant suggestions to promote the healthy and orderly development of the media and analyst industry.