Environmental Uncertainty、Institutional Investors And Stock Price Synchronization

The environment and the enterprise are inseparable,and the enterprise depends on certain environmental conditions to be able to develop stably.In recent years,although China’s economy is developing at a high speed and the international economy is recovering,the environmental uncertainty in various countries is rising year by year.The impact of environmental uncertainty is multi-faceted.On the one hand,it will have a negative impact on the business activities of a single company.On the other hand,its uncertainty has a general impact on companies in the entire industry.Therefore,studying environmental uncertainty can not only help companies deal with the shock of uncertainty,but also help maintain market stability.Furthermore,China’s capital market is not developed,belongs to the inefficient market,and noise is more likely to be the dominant factor affecting stock price fluctuations.In addition,with the rapid development of institutional investors,their influence in the capital market is also increasing,and many literatures have also proved that institutional investors have various positive effects on the market.So,how will the synchronicity of stock prices change under the circumstance of uncertainty,what influence can institutional investors play in this relationship,and whether different types of institutional investors play different roles,in what ways does environmental uncertainty affect stock price synchronization?This thesis sorts out and summarizes the relevant literature,and finds out the gaps of the existing research.Under the support of relevant theories,relevant hypotheses are proposed;listed companies on both the Shanghai and Shenzhen exchanges from 2005 to 2020 were selected for the study,using empirical tests to process and regress their relevant data,we first explore the effect of environmental uncertainty on stock price synchronization using a multiple linear regression model;and then,the influence of institutional investors’ participation is added to consider the possible moderating effect of institutional investor participation;further divide institutional investors into stable institutional investors and transactional institutional investors according to the two dimensions of time and industry,and explore the different moderating effects on the relationship between environmental uncertainty and stock price synchronicity;finally,analyze the environmental Influence mechanism of uncertainty on stock price synchronicity.The research shows that:(1)There is a negative correlation between environmental uncertainty and stock price synchronicity.The higher the environmental uncertainty faced by enterprises,the lower the stock price synchronicity;(2)The degree of institutional investor participation has a significant impact on the relationship between environmental uncertainty and stock price synchronicity has a moderating effect.The higher the participation of institutional investors,the weaker the negative impact of environmental uncertainty on stock price synchronicity;(3)Stable institutional investors can mitigate the negative relationship between environmental uncertainty and stock price synchronization,while transactional institutional investors have no significant impact on the relationship;(4)The quality of accounting information disclosure plays a partial intermediary role in the relationship between environmental uncertainty and stock price synchronization,which proves the fact that the information efficiency of China’s capital market is poor.The main contribution of this thesis is to supplement the research on environmental uncertainty and stock price synchronicity,and it provides a new idea on how to correctly understand the impact of environmental uncertainty,further guide the healthy development of institutional investors and improve the relevant system construction,and maintain the stability of capital market.