| At present,our country's economy is in the upgrade phase of old to new kinetic energy conversion,and the economic slowdown in the formation of traditional growth force is urgently needed to give birth to the new power of economic growth,and therefore urgently requires enterprises to build new core competence to accelerate growth.At the same time,the Central Economic Work Conference in 2018 proposed to strengthen the fundamental status of competition policy and create an institutional environment for fair competition.This also means that the competition between various market competitors will be more direct and fierce.Companies must work hard to strengthen their own "hematopoietic capabilities" in order to seek survival opportunities in the fierce market competition.This makes the urgency to cultivate the core competence of enterprises more prominent than ever,and also increases the demand for the core competence information of enterprises from investors and other stakeholders.In order to comply with the development of the times,the my country's Securities Regulatory Commission published "Guidelines No.2 for the Content and Format of Information Disclosure by Companies that Publicly Issue Securities-Content and Format of Annual Reports(Revised in 2012)",introducing core competence in the annual report information disclosure,which is a new disclosure content,and clearly requires listed companies to start to compulsorily disclose their core competence during the reporting period in the Section 4-Board Report in the annual report,creating a precedent for the core competence information disclosure system.Thereafter,the China Securities Regulatory Commission revised the disclosure position of the core competence,and changed it to the Section 3-Business Summary Segment.At the same time,examples for the core competence disclosure were added the core management team,key technical personnel,in addition,equipment was revised to proprietary equipment.Different from internal control audit reports and corporate social responsibility,core competence information disclosure system has not experienced a gradual evolution from a voluntary information disclosure system to a mandatory information disclosure system.This system was "a big step" in the information disclosure system of Chinese securities institutions.The innovative move embodies the efforts and determination of the China Securities Regulatory Commission in improving the information environment of the capital market and regulating the information disclosure of listed companies.It also fully demonstrates the urgency to add core competence information disclosure.However,since my country's core competence information disclosure system is still in its infancy,whether this system innovation can effectively reflect corporate fundamental information,have a positive impact on the market,and achieve the goals expected by the securities regulatory authorities remains to be discussed.On the one hand,core competence has attributes of inimitability and non-substitutive.These two attributes determine that it is difficult for competitors to obtain core competence through simple imitation,so the proprietary cost of information disclosure is low.On the other hand,the core competence information disclosure is non-financial information,and non-financial information contains high subjective components,especially in the absence of independent third-party verification,noise information may be more.A large number of studies have shown that in China's emerging market system,the narrative and poor appraisal of non-financial information may make it a strategic disclosure behavior,which provides opportunities for executives to hide their earnings manipulation.These characteristics lead to the fact that the core competence information disclosure may not only be a means for enterprises to reduce information asymmetry,but also may be "painless" disclosure by management to cope with the Securities Regulatory Commission,and may even be a tool for management to seek personal gain.In other words,the core competence information may not have information content,which is not conducive to improving the information efficiency of the capital market.In addition,the core competence is stable,and there may be no important changes in the content of the core competence information disclosure from year to year.Therefore,the impact of core competence information disclosure on market information efficiency may be different from ordinary announcement information.Based on the above three aspects,it is uncertain whether the increased core competence information disclosure mandated by the China Securities Regulatory Commission can improve the efficiency of the securities market and remains to be empirically tested.The information efficiency of the capital market is the foundation of the operation of the securities market and the direction of China's financial reform in the new era.An important manifestation of the difference in information efficiency is the pricing efficiency of the secondary capital market,that is,the synchronization of stock prices.Based on this,this article takes the synchronization of stock prices as an entry point to carry out an empirical study of the information disclosure of core competence on the information efficiency of the capital market,including the following three aspects:First,the core competence information disclosure and stock price synchronization.The study finds that firstly,the length of core competence information disclosure has nothing to do with the company's stock price synchronization,but the more idiosyncratic information in the company's core competence information disclosure is,the lower the stock price synchronization is.That is,the synchronization of the company's stock price has nothing to do with the text length of the company's core competence analysis paragraph,but is related to its idiosyncratic information.Secondly,the impact of different types of core competence information disclosure on stock price synchronization is heterogeneous.Specifically,the three types of core competence information disclosure,namely resources,capabilities and knowledge category have a significant inhibitory effect on the synchronization of corporate stock prices.However,the core competence information disclosure of relationship category does not have a significant inhibitory effect on the stock prices synchronization.Thirdly,further research finds that the information disclosure of core competence can well explain and predict current and future earnings,indicating that the information disclosure of core competence is a reasonable and true description of corporate fundamentals,rather than a virtual reality,which supports the information disclosure of core competence is conducive to improving the capital market information environment from other side.Fourthly,based on the research on the text characteristics of the core competence information disclosure,it is found that the higher the similarity of the core competence information disclosure between the current year and the previous year,the lower the similarity with the same industry's core competence information disclosure,and the higher the readability of the core competence information disclosure is,the more significant the negative relationship between core competence information disclosure and stock price synchronization is;research based on the company's internal basic characteristics finds that the higher the company's information asymmetry and the better its performance is,the more significant the negative relationship between disclosure and stock price synchronization is;research based on the company's external institutional environment finds that the higher the marketization level of the province company's located,the greater the degree of corporate market competition is,and the more significant the negative relationship between the core competence information disclosure and stock price synchronization is.Second,the analysts' information intermediary role.The research finds that firstly,analysts played an information intermediary role in promoting stock prices to reflect core competence information in a timely manner;secondly The core competence information disclosure increases public information using in analyst prediction,reducing the content of private information using in analyst prediction,which behaves as analyst research,indicating that the core competence is what analyst need in conducting earning forecasts.What's more,the research excludes the possibility that the reduction in stock price synchronization is due to the idiosyncratic information in core competence information disclosure,which transmits a signal to the outside world,causing analysts to pay attention to,and then excavating more idiosyncratic information,namely,analysts' "Information Mining" role;thirdly analysts' features have a significant impact on analysts playing information intermediary effects,that is,the stronger analysts' ability,the more diligent analysts are,and the more beneficial for the analysts to play the information intermediary in integrating the core competence information disclosure into the stock price in,thereby reducing the stock price synchronization;fourthly,analysts' interpretation of the core competence information disclosure will also have a positive impact on its forecast activity,specifically manifested as significantly reducing of analyst earnings prediction deviation and analyst earnings prediction dispersion.Third,the economic consequences of core competence information disclosure that affect the synchronization of stock prices.The study finds that the core competence information disclosure suppresses the learning effect of management while reducing the synchronicity of stock prices;secondly,although the core competence information disclosure reduces the efficiency of corporate investment,in general,the core competence information disclosure is conducive to the improvement of the company's value;thirdly,cross-sectional analysis finds that the lower the degree of financing constraints faced by the company,the more informed transactions are,the more significant reduction effect of stock price-investment sensitivity caused by core competence information disclosure in reducing the synchronization of stock prices will be.The research contributions of this article are mainly reflected in the following five aspects:First,this article provides a rich microscopic evidence for the comprehensive evaluation of the core competence information disclosure system,and has certain policy implications for how to optimize the core competence information disclosure system.In the past,my country's information disclosure system copied the advanced and mature information disclosure system of the West.The core competence information disclosure system is a bold attempt by the China Securities Regulatory Commission based on local practices and insisted on firm institutional innovation,which has epoch-making significance.Therefore,it is of great significance to explore the comprehensive assessment of core competence information disclosure system.This article uses the microscopic perspective of capital market information efficiency as an entry point to discuss the impact of the core competence information disclosure system on the synchronization of stock prices.The above evidence affirms the positive economic impact of the core competence information disclosure system,and shows that the core competence information disclosure system fits the original intention of the system design.In addition,the research conclusions of this article reveal the conditions under which core competence information disclosure affects the capital market information environment,that is,the effect of core competence information disclosure on the reduction of stock price synchronization has nothing to do with the length of the company's core competene analysis paragraph,but is related to its idiosyncratic information.The research conclusions of this article reminds that when regulating information disclosure,regulatory agencies should increase the disclosure requirements of idiosyncratic information,so as to prevent management from making "painless" disclosures to meet the requirements of the China Securities Regulatory Commission,and to improve the quality of core competence information disclosure.Second,it provides a new research object for the research of information disclosure.The existing textual analysis literature mostly focus on the management analysis and discussion and its risk disclosure paragraph in the annual report,ignoring the importance of the core competence analysis paragraph.Based on China's unique core competence information disclosure system,this article incorporates the forward-looking information,namely,core competence information into the information disclosure research category,and builds the competence information disclosure indicators based on entity naming technology.In addition,this articles meticulously discusses from the three dimensions,namely,core competence information disclosure characteristics and the internal and external environment characteristics of the enterprise,which has greatly enriched the research content of information disclosure.Third,it adds direct empirical evidence that the stock price synchronization can measure the company's idiosyncratic information content.The relationship between stock price synchronization and information or noise has always been the focus of debate in the theoretical circle.The information efficiency school believes that the stock price synchronization reflects the amount of company-specific information incorporated in the stock price;while the irrational school believes that the lower stock price synchronization is due to irrational factors such as bubbles,noise and investors panic in the market.The study finds that the stock price synchronicity is negatively related to the idiosyncratic corporate core competence information disclosure,and has nothing to do with the amount of information disclosure.This means that the amount of corporate idiosyncratic information can be used to explain the difference in the synchronization of stock prices between different companies.Therefore,the conclusion of this article adds direct empirical evidence that stock price synchronization can measure the idiosyncratic information content of stock prices.Fourth,there are still major controversies about whether my country's information disclosure system is effective.This article is based on China's unique core competence information disclosure system,and takes the core competence information disclosure in the annual report as the research object to test whether the core competence information disclosure can effectively reduce the synchronization of stock prices and improve the information efficiency of the capital market.Considering that in the formation of stock price synchronization,the company's idiosyncratic information often plays a decisive role,so this article distinguishes the content of core competence information disclosure,and explores the length and its idiosyncratic information of core competence information disclosure on the synchronization of stock prices,which can be used to clearly explore the specific information content of core competence information disclosure that affects the synchronization of stock prices,eliminate the noise caused by different types of information,provide empirical evidence for information disclosure to reduce the synchronization of stock prices,and provide a new perspective for the resolution of disputes in existing literature.Therefore,the research in this article provides strong evidence for the usefulness of the information disclosure system and responds to the doubts of some documents on the information disclosure system.Fifth,the research perspective of the information disclosure system has been expanded.The existing literature mainly explores the positive effects of the information disclosure system from the perspective of the information efficiency of the secondary capital market,ignoring its possible negative effects on the real economy.While continuing the traditional research logic of the information disclosure system,this article is based on a new perspective of investment efficiency in the real economy.The research finds that the improvement of capital market information efficiency brought about by the core competence information disclosure will reduce the investment efficiency of enterprises.This conclusion shows that the information effect and the real effect are not always accompanied,and the information effect is not a sufficient or necessary condition for the real effect.Therefore,the conclusion of this article also reminds policy makers that they should not ignore its possible negative impact on the real economy when formulating an information disclosure system. |
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