The Influence Of Annual Report Tone On Stock Liquidity

In recent years,with the continuous advancement of the standardization of information disclosure in my country’s capital market,annual reports have increasingly become a source of information that investors are eager for.The release of annual reports has caused fluctuations in stock prices and a sharp increase in trading volumes.The annual report is an important way to help investors understand the company’s operating conditions,profitability and intrinsic value.The information disclosure of listed companies can directly affect the information asymmetry between investors and companies in the securities market and adjust the cost of stock transactions.This affects changes in stock liquidity.However,there is still no definite method to evaluate the authenticity of the annual report.In the case of financial report fraud incidents in my country,whether the release of the annual report can effectively reduce the information asymmetry between the internal and external investors of the company as expected,improving the overall efficiency of the market is a thorny issue faced by my country’s regulatory authorities and investors.This paper takes the data of 360 listed companies in the Shanghai Stock Exchange from 2017 to 2020 as a research sample,uses high-frequency data to calculate liquidity indicators,and uses multiple regression to explore the relationship between annual report tone and stock liquidity.The study found that the more positive the tone of the annual report,the higher the corresponding stock liquidity.In addition,because the quality of corporate annual reports may be manipulated by the opportunistic behavior of management,the quality of annual reports disclosed by companies is also different under the circumstances of different performance and different levels of supervision.As a result,the tone of annual reports has different effects on stock liquidity.Therefore,by grouping corporate profitability,institutional investor shareholding ratio,and controlling shareholder shareholding ratio,this paper further explores whether the tone of the annual report has the same impact on stock liquidity in different situations.By using grouping regression,this paper empirically tests the relationship between annual report tone and stock liquidity under different circumstances.There are significant differences in impact.Through the above analysis,this paper believes that the "manipulation" behavior of annual reports may have the following reasons:(1)the current relevant regulatory system in my country is not perfect,resulting in the current phenomenon of "manipulation and processing" in information disclosure;(2)the overall market The atmosphere is impetuous,and the enterprise lacks standardized information disclosure standards;(3)the market investor group lacks the ability to rationally analyze,which causes the "manipulation" atmosphere of information providers;(4)There is a lack of strong internal supervision within the enterprise.Therefore,this paper puts forward three suggestions for the above problems: the regulator should establish an effective mechanism to promote the management to make objective disclosure,and increase the punishment for false disclosure;the enterprise should improve the ability to disclose risk information and improve the risk management.Quantitative disclosure;investors should comprehensively analyze the disclosed information from multiple perspectives,and make investment decisions that are beneficial to themselves.The innovations of this paper are: first,from the perspective of information disclosure of polar emotional intonation to improve liquidity;second,this paper finds that emotional intonation has a signaling effect and improves market liquidity.Third,from the three different situations of corporate profitability,institutional investor shareholding and equity concentration,this paper finds that the stronger the corporate profitability,the higher the corporate institutional investor’s shareholding ratio,the higher the corporate equity concentration,and the higher the annual report.Tone has a stronger effect on improving stock liquidity.