Research On Information Disclosure Quality,Investor Sentiment With The Stock Price Synchronization

Stock Price Synchronicity refers to the correlation between the change of the Price of a company's share Price and the average change of the market.One of the basic functions of capital market is using the signal mechanism of stock prices to optimize the allocation of resources.If the function of a securities market is effective,then the price is able to guide scarce capital in the market to maximizethe returns.Based on this,stock price synchronicity is widely used as a measure of the information efficiency of stock market in our research of economic issues.Information Disclosure Quality directly affects the development of the stock market.The interests of Investors can be effectively protected only if to guarantee the timeliness,authenticity,integrity and standardization of Information Disclosure.Information is the most basic and important factor in the stock market,and the healthy and orderly development of the stock market cannot be out of real,timely and complete information disclosure of listed companies.The information disclosure system of listed companies is one of the basic systems of the stock market,and its completion and standardization make the great significance to improve the transparency of the stock market.Information is the most important factor to determine the fluctuation of stock price in the stock market.The quality of information disclosure leads the flow of funds in the market and optimizes the capital allocation structure.Effective information disclosure can reduce the degree of information asymmetry,protect the external investors in the information disadvantages,and maintain the principle of openness,fairness and impartiality of capital market.From the perspective of information economics,real and effective information disclosure helps to avoid the adverse selection caused by asymmetric information and moral hazard problems.According to the price signals,investors can match their own expected utilities of investment decision,so that capitalmarket allocation efficiency can be improved.This paper researches how the information disclosure quality and investor sentiment of real estate listed companies in Shanghai stock market affect the stock price synchronicity.The sample is 63 real estate companies' data from year 2007 to 2016 chosen from CSMAR database and Shanghai stock exchange online database.Using the regression analysis tools in Microsoft Excel and STATA to do empirical calculation and statistical analysis after data sorting,filtering and processing.The framework of this paper is,firstly,introducing the background of this research,then resenting the feasibility of the influence and affection on stock price synchronicity made by those listed companies' information disclosure quality and investor sentiment,then intensively review the research of how the information disclosure quality and investor sentiment affect the stock price synchronicity with many domestic and foreign literature.According to the information,data,experience,combining with the literature,I raised four hypotheses,and made the empirical models.The research is in the category of Quantitative Economics and Behavioral Finance.This paper empirically analyzed about the information disclosure quality and investor sentiment,as well as their common mechanism influence to stock price synchronicity.It is a supplement for research about the stock price synchronicity.The research of this paper has enriched the existing literature and provided theoretical and empirical evidences and information for the improvement of the trading and regulatory system of stock market.