Information Disclosure Quality?Institutional Investors And Stock Price Synchronicity

The phenomenon of stock price Synchronicity exists in all capital markets around the world,but it is more obvious in emerging markets.According to previous scholars'research,the level of stock price Synchronicity in China's securities market is particularly significant on a global scale,exceeding the average level of other securities markets.Excessive stock price Synchronicity is not conducive to investors making rational investment in company value through company information.It may lead to the inflow of high-quality capital into companies with poor operating efficiency,which will lead to adverse selection problems and reduce market operation efficiency.Therefore,according to the formation reasons and influencing factors of stock price synchronicity,it is possible to reduce the stock price synchronicity by increasing market supervision and other means,which is of great significance to improve the resource allocation efficiency and market effectiveness of China's securities market.The problem of information asymmetry between company managers and investors is an important factor affecting the effectiveness of the securities market and the efficiency of information transmission.The improvement of the quality of information disclosure can reduce the degree of information difference between management and investors,to a certain extent.Alleviate information asymmetry.Institutional investors also play an irreplaceable role in improving the efficiency of market resource allocation.Based on the above background,this paper uses Shenzhen Non-financial listed companies as samples to empirically analyze the quality of information disclosure,institutional investors' shareholding ratio and heterogeneity,and stock price Synchronic relationship,and further explore the regulatory role of institutional investors' shareholding ratio and heterogeneity on the relationship between information disclosure quality and stock price Synchronicity.The conclusions of this paper are as follows:(1)The stock price synchronicity increases with the improvement of the quality of information disclosure.This is because China's capital market started late,and the stock price Synchronicity is largely caused by market noise.The improved quality of information disclosure of listed companies can reduce the degree to which the company's stock price is affected by noise.(2)Synchronicity of stock prices decreases as the proportion of institutional investors increases.When institutional investors are stable,share price Synchronicity is lower.(3)When the shareholding ratio of institutional investors increases,the positive effect of information disclosure quality on share price Synchronicity is weakened.When the type of institutional investors is transaction type,stock price synchronicity increases significantly with the improvement of information disclosure quality;When the type of institutional investor is stable,the quality of information disclosure will not have a significant impact on stock price synchronicity.Based on the existing literature,this paper enriches the research content of the factors affecting stock price Synchronicity,and describes the quality of information disclosure and the role of institutional investors in reducing market noise and improving the effectiveness of capital markets.By studying the heterogeneity of institutional investors,the role of different types of institutional investors in the securities market is analyzed,which provides a direction for strengthening the management of investors,thereby promoting the development of institutional investors and strengthening the protection of small and medium investors.And put forward targeted recommendations to the government and listed companies to improve the level of information disclosure in China's market,reduce speculation in the capital market,and contribute to improving market efficiency and resource allocation efficiency.