| Stock prices synchronicity refers to the phenomenon that individual stock prices rise and fall together in the market.The causes and effects of synchronization are one of the hot research issues in the field of finance.Since Roll(1988)first pointed out that CAPM’s explanatory power was so low because of the company’s characteristic information or occasional fanaticism,to the hypothesis of "information efficiency" represented by Morck et al.(2000)and the hypothesis of "irrational noise" represented by West(1988),The problem of stock price synchronization has been studied with vigour and vitality.After thirty years of rapid development of China’s stock market,the market system and the function of resource allocation are constantly improved,but the "boom and crash" of the stock market is still criticized by investors.Existing studies generally believe that the stock price synchronization in China’s stock market is high,the company trait information is less integrated into the stock price,and the stock price information efficiency is low(Morck et al.,2000;Huang and Guo,2014),excessive stock price synchronization will seriously damage the efficiency of resource allocation in the stock market(Yi et al.,2019).Information processing and capital allocation are the two basic functions of the securities market.The capital market is to optimize the allocation of resources through the stock signal mechanism,while the stock price has the dual function of revealing information efficiency and capital allocation efficiency.At the same time,stock price synchronicity is closely related to the stable development of the stock market.From August 2015 to May2019,the phenomenon of "1,000 shares falling by the limit" in China’s capital market has reached 20 times in total.Therefore,it is urgent for companies to strengthen the disclosure of individual stock trait information and further improve the efficiency of market information.Therefore,the research on the synchronization of stock prices is helpful to understand the development characteristics of China’s capital market,maintain market stability and improve market information efficiency,and further give full play to the important functions of information processing and capital allocation.At present,the researches on stock price synchronization at home and abroad mostly focus on corporate governance,corporate information environment,analyst tracking and institutional investors’ shareholding,etc.,and less attention is paid to the influence of investors’ information ability on stock price synchronization.According to the classical market microstructure theory,information-driven trading is the main reason for price changes.Therefore,from the perspective of information integration,we should pay more attention to the influence of investors’ ability on stock price synchronicity.This paper attempts to analyze the influence of different investors on the synchronicity of stock prices from the perspective of information,so as to judge whether the modern information technology and information governance system construction can play a role in improving the information ability of investors,and then improve the market information efficiency.Institutional investors are not only important participants in the capital market,but also important subjects to improve the corporate governance mechanism.Existing literature mainly studies the synchronization of stock prices through institutional investors’ shareholding and trading,but investors make final decisions based on the amount of information they have.There is little research on the influence of the change of institutional investors’ information on stock price synchronicity.The Information Disclosure Business Memorandum No.41-Investor Relations Management and Information Disclosure issued by the Shenzhen Stock Exchange in 2013 enables capital market participants to obtain real-time information related to institutional investor research.Based on this,this paper will take the perspective of institutional investors’ research as the entry point to explore the impact and mechanism of the improvement of their information ability on the change of corporate stock price synchronicity,in order to further enrich the relevant literature on the factors affecting corporate synchronicity and the governance role of institutional investors.At the same time,as another important participant in China’s stock market,individual investors usually show obvious irrational investment behavior.Based on the existing research,it is believed that institutional investors should be vigorously developed to improve the effectiveness of the market.However,as an emerging securities market in China,the situation that individual investors account for a large proportion of the market will not change in the short term.Therefore,while accelerating the development of mature institutional investors,efforts should be made to solve the irrational behaviors of individual investors and reduce the impact of adverse behaviors,which is also crucial to improve the efficiency of China’s stock market.With the popularization of the Internet and the development of big data and other information technologies,investors have more ways to obtain the information of listed companies.Based on the Internet search and the interactive platform with listed companies as the entry point,this paper studies how to improve the information ability of individual investors through information technology and how to affect the synchronization of stock prices.Therefore,with the continuous improvement of the information disclosure system of listed companies and the rapid development of modern information technology,investors’ access to information and information ability have improved significantly.By studying the influence of the improvement of investors’ information ability on the synchronicity change of stock prices in China,this paper,on the one hand,has a deeper understanding of the economic meaning of the synchronicity change of stock prices;on the other hand,It is of great significance to the current regulatory authorities to regulate the operation of listed companies,improve the investor governance system and the role of modern information technology in the securities market,and promote the stable and healthy development of the securities market.Based on the background of the topic and the question to be discussed,the research content of this paper is divided into seven chapters for demonstration:Chapter1: Introduction.Firstly,the background of the topic selection is explained,then the main basis of the topic selection is put forward,and the research value and significance of this paper is expounded from two aspects of theory and reality.Finally,the research content,ideas,methods and possible innovations and deficiencies of this paper are explained.Chapter2: Literature review.This chapter reviews the research from four aspects,namely,investor information ability,influencing factors of stock price synchronicity,the influence of investor transaction heterogeneity on stock price synchronicity and the heterogeneity of investor information ability,and focuses on the evaluation of domestic and foreign research results,existing deficiencies and controversies.Through a review of the existing relevant literatures from multiple research perspectives,this paper laid a literature foundation for the innovation and hypothesisChapter3: Theoretical analysis and research hypothesis.This chapter makes a theoretical analysis of the impact of the improvement of institutional investors’ information capacity and individual investors’ information capacity on stock price synchronicity,and puts forward corresponding research hypotheses for subsequent empirical tests.Chapter4 & Chapter5: The empirical analysis of the influence of investors’ information ability on stock price synchronicity.Among them,the fourth chapter empirically tests the effect and mechanism of the improvement of institutional investors’ information ability on stock price synchronicity.The fifth chapter empirically tests the effect and mechanism of improving individual investors’ information ability on stock price synchronicity.Chapter6: Stock price synchronization "information efficiency" hypothesis and investor trading test.Firstly,this paper conducts qualitative research on the hypothesis of "information efficiency" which supports the current stock price synchronicity in China,and tests the access to information.Secondly,the paper verifies whether it is reasonable to distinguish institutional investors and individual investors by order size respectively,and whether it can trade on behalf of the corresponding investors.Chapter7: Conclusion,suggestion and research prospect.Firstly,this paper summarizes the research conclusions on the influence of different investors’ information capabilities on stock price synchronicity.Secondly,on the basis of the research conclusions,it puts forward relevant suggestions to improve the stock market.Finally,the stock price synchronization,institutional investors and individual investors and other securities market issues need to be further studied in the future.Based on the argumentation and research contents of this paper,the following main conclusions are drawn:The first is the conclusion of the research on the influence of the improvement of institutional investors’ information ability on stock price synchronicity.This paper studies the effect and mechanism of the improvement of institutional investors’ information ability on the change of stock price synchronicity by using the market information governance mechanism of investors’ field research.The research finds that,firstly,the improvement of institutional investors’ information ability can significantly reduce the synchronicity change of the company’s stock price under the condition of field research.This conclusion indicates that the improvement of institutional investors’ information ability is an effective way to improve the stock price information efficiency of listed companies.Second,the impact of institutional investment research on the synchronicity of stock price changes presents different characteristics under different conditions.When the shareholding of institutional investors is lower,the regulatory effect is weaker,and the effect of institutional investors’ research on improving the efficiency of stock price information is more significant.At the same time,in companies with poor performance growth and less news coverage,since the problem of information asymmetry is more serious at this time,the effect of institutions’ research on reducing stock price synchronicity will be more significant.Thirdly,in the research on the mechanism of institutional investor research to reduce stock price synchronicity,it is found that institutional investment research can exert governance effect on the one hand,reduce the level of earnings management of the company,and at the same time exert information effect,reduce the divergence of analysts’ forecasts,reduce stock price synchronicity and improve the information content of stock price.The second is the conclusion of the research on the influence of the improvement of individual investors’ information ability on stock price synchronicity.Based on the evidence of information technology application in Internet search and interactive platform with listed companies,this paper examines the effect and mechanism of improving individual investors’ information ability on stock price synchronicity.The research findings are as follows: firstly,under the application of information technology,the more the Internet searches of individual institutional investors,the improvement of information ability can significantly reduce the synchronicity change of the company’s stock price.This conclusion indicates that improving the information ability of individual investors is also an effective way to improve the stock price information efficiency of listed companies.Secondly,when the liquidity of a company’s stock is poor and analysts pay less attention to it,the information asymmetry between investors and listed companies is more serious,and individual investors can obtain more additional information through Internet search.Therefore,improving the information efficiency of stock price and reducing the synchronicity of stock price are more significant.At the same time,when the separation of corporate control rights and cash flow rights is more serious,and the corporate governance level is lower,the company has a stronger incentive to hide the real business situation,and the role of individual investors in reducing the synchronicity of stock prices through Internet search is also more significant.Finally,in the examination of the mechanism by which the improvement of individual investors’ information ability affects the stock price synchronicity,it is found that when individual investors obtain more information about the company’s characteristics through Internet search,their irrational herding behavior decreases significantly,and the information content of stock price is further improved.The third is the conclusion in the further robustness test.On the one hand,based on the hypothesis of "information efficiency" of stock price synchronicity in this study,it is found that trading by informed investors reduces the synchronicity of stock price in the market,while trading by uninformed investors increases the synchronicity of stock price,which supports the hypothesis of "information efficiency" of stock price synchronicity.This shows that although there are many irrational noise trading behaviors in China’s stock market at present,it is still a market dominated by information trading.In this paper,on the other hand,in order for individual investors trade and less than 40000 yuan more than 300000 yuan deal for institutional investors to identify whether reasonable inspection found that institutional investors to increase by big initiative buy stock,sold out through the big single underweight stocks,small single launched a rival trading for individual investors.Based on the main conclusions of the study,the possible contributions of this paper are as follows:Firstly,through the research on the influence of the improvement of institutional investors’ information ability on stock price synchronization.First,this paper explores the mechanism of the improvement of institutional investors’ information capability on the company’s stock price synchronization.The evidence of this paper shows that the improvement of institutional investors’ information capability is an effective way to reduce the stock price synchronization of listed companies,which is an important supplement to the relevant literature on institutional investors’ influence on the company’s stock price synchronization.Second,from the perspective of investors’ information ability,the paper examines the effect and transmission path of the field research system on the securities market,and enriches the literature on the impact of field research on the securities market of listed companies.This shows that the field research to improve the information ability of investors can help reduce the synchronicity of individual stock prices,and is of great benefit to improve the information efficiency of the securities market.Third,it verifies the role of institutional investors in improving the efficiency of market supervision.This paper verifies that institutional investors are not only important participants in the capital market,but also important subjects in improving the corporate governance mechanism through the active acquisition of information,which enriches the research on the role of institutional investors in market efficiency.Secondly,through the research on the impact of the improvement of individual investors’ information ability on stock price synchronization.First,the evidence in this paper shows that improving the information ability of individual investors is also an effective way to reduce the stock price synchronicity of listed companies,which is an important supplement to the literature on the influence of individual investors on the stock price synchronicity of companies.Individual investors as the important part of the security market of our country and still be able to play to improve the listed company’s share price information content,the important role to improve efficiency in the market information,in the second place,from the Angle of investors information ability test information technology application effects on the securities market and the conduction path,enrich the research literature on the impact of information technology on the securities market.This provides a theoretical basis for the rapid development of digital economy by relevant government departments and the introduction of relevant policies and measures of information technology to address the deficiency of investors’ information ability.Thirdly,this paper verifies that individual investors can reduce irrational herding behavior through active acquisition of information,which enriches the research on the effect of individual investors on market efficiency.Finally,a further robustness test was carried out.On the one hand,from the perspective of the heterogeneity of information acquisition ability,the study on the influence of investor trading on stock price synchronicity enriches the research on stock price synchronicity.This paper provides a unified theoretical analysis on the contradictory conclusions of previous research on stock price synchronicity.Support stock price synchronization "information efficiency" hypothesis.The research shows that China’s stock market is still a market dominated by information trading,which has important practical significance for improving the healthy development of China’s stock market.On the other hand,through the identification and verification of the transactions of different investors,it provides a theoretical basis for the subsequent research on the influence and effect of different investors on the stock market. |
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