Inquiry Letter,accountability Of Accounting Stability And Synchronization Of Stock Price

China’s capital market is still in emerging markets,there are many financial risks in the market,and frequent violations of laws and regulations in corporate information disclosure have led to China’s stock price can not fully reflect the company’s characteristic information,which will seriously reduce the resource allocation efficiency of China’s capital market and affect the subsequent healthy development,so it is of great practical significance to study how to reduce the synchronization of China’s stock price,improve the content of stock price information,and realize the effective allocation of resources guided by the price mechanism.As an important accounting information quality requirement,accounting robustness directly affects the information content of stock prices,and stock price synchronization directly reflects the information content of stock prices,and it is important and necessary to study the impact of accounting robustness on stock price synchronization.At the end of 2013,the Shanghai Stock Exchange and the Shenzhen Stock Exchange began to implement the "information disclosure through train"reform,so that the exchange’s inquiries to enterprises and the reply letters of enterprises were made public,as an innovative measure,the inquiry letter has attracted more and more attention from scholars,and some scholars have pointed out that the exchange sending inquiry letters is of great significance to improve the company’s internal information disclosure environment and improve the quality of corporate information disclosure.Based on this,this paper aims to explore the relationship between inquiry letter and stock price synchronization,and explore the mediating role of accounting soundness in the intermediary between inquiry letter and stock price synchronization from the perspective of accounting soundness.Based on efficient market theory,principal-agent theory,information asymmetry theory,signal transmission theory,literature research method and empirical research method,this paper examines the relationship between inquiry letter,accounting soundness and stock price synchronization.Taking the A-share listed companies in Shanghai and Shenzhen from 2014 to 2021 as a sample,the two-way fixed-effect model was used for regression analysis,and the relationship between inquiry letters,accounting soundness and stock price synchronization was empirically tested,and the impact of inquiry letter characteristics,audit institutions,entrusted agency issues,institutional investors’ and analysts’concerns on the synchronization of the respondent company and the stock price was considered in further analysis.The research conclusions drawn in this paper are as follows:first,the inquiry supervision of exchanges can significantly reduce the synchronization of stock prices of enterprises in China’s capital market;Second,the more inquiry letters a listed company receives,the lower the synchronization of its stock price;Third,the company’s receipt of an inquiry letter for the annual report will reduce the synchronicity of its share price;Fourth,Exchange inquiry letters can reduce the synchronicity of corporate stock prices by affecting corporate accounting conservatism;Fifth,exchange inquiry letters are more useful in companies that are audited by non-Big Four accounting firms,have a higher degree of separation of ownership and operating rights,have a lower shareholding ratio by institutional investors,and have less attention from analysts.Finally,based on the above research conclusions,this paper puts forward countermeasures and suggestions from the perspective of exchanges,enterprises and investors,which provides reference for improving the resource allocation efficiency of China’s capital market.