The Impact Of Corporate R&D Investment On Stock Price Synchronicity

Stock price synchronicity refers to the correlation between the changes of the company’s stock returns and the changes of the average market returns.It is generally believed that stock price synchronicity is closely related to the content of company characteristic information in the stock price.High stock price synchronicity indicates that company characteristic information is less integrated into stock price through trading,which leads to the inability of investors to identify companies with different qualifications through the change of stock price,and impairs the efficiency of the capital market.Therefore,it is of great significance to study the factors that affect stock price synchronicity to improve the efficiency of capital market.China has actively issued various policies to encourage R&D,and listed companies have increased the intensity of R&D investment following the national policies.However,due to the high uncertainty and complexity of R&D investment,the external investors do not know enough about the future benefits and risks implied by R&D investment,and the public information disclosure mechanism of R&D investment in China is not perfect,high R&D investment of listed companies in China may cause serious information asymmetry problems,resulting in the improvement of stock price synchronicity.As important participants in the capital market,the media and QFII play an important role in interpreting and analyzing the company characteristic information,which can effectively reduce information asymmetry between listed companies and investors,thus reducing stock price synchronicity.This paper takes the data of all A-share listed companies in China from 2012 to 2021 as the sample,explores the impact of R&D investment on stock price synchronicity,as well as the regulatory role of media attention and QFII shareholding on the relationship between the two.This psper takes stock price synchronicity as the explanatory variable,takes the R&D investment as the explanatory variable,introduces media attention and QFII shareholding as the adjusting variable,carries out fixed effect multiple linear regression analysis.The results shows: within the scope of this sample,there is a significant positive correlation between the R&D investment and stock price synchronicity,indicating that the increase of R&D investment will aggravate the information asymmetry,and reduce the content of company characteristic information in stock price.This paper introduces media attention and QFII shareholding as adjusting variables.It is found that with the improvement of media attention and the increase of QFII shareholding,the positive impact of R&D investment on stock price synchronicity will be inhibited,indicating that media attention and QFII shareholding can effectively alleviate the information asymmetry caused by R&D investment and increase the content of company characteristic information in stock price.This paper has certain theoretical and practical significance.In theory,this paper discusses the relationship between R&D investment and stock price synchronicity,and verifies the negative regulatory effect of media attention and QFII shareholding;In practice,this paper shows that the higher the R&D investment,the higher the stock price synchronicity,and the media and QFII can alleviate the positive correlation between the two.The research conclusion provides some ideas for listed companies to improve the level of information disclosure and reduce stock price synchronicity.