Management Power?Analyst Attention & Stockprice Synchronicity

The stock price synchronicity is the “same rise and fall” phenomenon of the stock price,that is,the same direction change of the stock price of a single company with the change of the average price of the market.Stock price volatility is mainly affected by three aspects: first,market information,second,industry information,and third,company trait information.The first two aspects are not the real cause of stock price volatility.What really matters is company trait information.The characteristics of China's stock market are that the volatility of stock prices is small,the price is distorted,the efficiency of capital market information is low,and the phenomenon of rising and falling is more serious.At the same time,many scholars have found that through research that the phenomenon of rent-seeking by executives of listed companies in China is widespread.In pursuit of more private benefits,executives have an incentive to maximize their own interests and reduce the quality of accounting information by selecting accounting policies.In order to be able to exercise control over the compensation contract,executives also use power to manipulate accounting information.The more powerful the executives control the more corporate resources,the more serious the opportunistic behavior of executives.For the benefit of their own interests,executives will tend to use power for rent-seeking,exert control over accounting information disclosure contracts,and meet the requirements of assessment indicators through earnings manipulation of accounting performance.Company trait information is the main reason that affects the stock price synchronicity.How does the information provider executives who are the company's trait information affect the company's information quality?and how to influence the information transmitted to the market?and then the executive stock's stock price synchronization What is the impact? Combining with domestic and foreign research,this paper is based on the characteristics of corporate governance in China,and is based on the study of reducing stock price synchronicity.First,it demonstrates how executive power affects stock price synchronicity,and then joins analysts' attention to test its power over executives.The impact of stock price synchronization.The data in this paper is based on the use of A-share listed companies in Shanghai and Shenzhen stock markets.The time span of research is from 2013 to 2017.And the following conclusions: executive power is positively related to stock price synchronicity,that is,as executive power increases,there will be more incentives for opportunistic behavior,which will reduce the quality of information provided by the company,and thus reduce the transmission of information to the capital market.The efficiency of the company makes it difficult to integrate the trait information at the company level into the stock price,which improves the stock price synchronization.After the senior management area is subdivided into organizational power,ownership power and personal power,each subdivided power positively affects the stock price.Synchronization level with the increasing attention of securities analysts,on the one hand,it can effectively supervise executives and improve the quality of information disclosed by companies.On the other hand,when executives conduct opportunistic behaviors such as earnings manipulation,analysts can take advantage of information and have strong interpreting skills,making the company's information more acceptable to investors,and alleviating information caused by high executive power.Symmetry helps investors make rational investment decisions and increases the information content of stock prices.The above conclusions can enrich the research on the factors affecting the stock price synchronization from the perspective of the company's executive power,and provide inspiration and suggestions for us to improve the efficiency of the securities market.