Hedging, Accounting Information Quality And Stock Price Synchronicity

In a function-effective capital market,the stock price can reflect the company's trait information and then play a guiding role in resource allocation.It has been found that the phenomenon of “going up and going down together” between the stock price and the market share price is mainly related to the degree to which the idiosyncratic information of the company is integrated into the stock price and the noise of the irrational emotion of investors in the market,which has led to the endless debate between the “information efficiency view” and the “noise view”.As an “ emerging + transition” capital market,China's securities market has undergone more than 30 years of development and construction,and relevant basic system construction has made significant progress,and the market mechanism has become increasingly sound.However,according to statistics,China's stock price synchronization is still the highest in the market of all countries,which indicates that the market mechanism and information efficiency of China's securities market still needs to be improved.In recent years,the use of derivatives for hedging has gradually become the main means of risk management of listed companies.With the wide application of hedging and the continuous improvement of accounting standards for enterprises,the hedge accounting information disclosed in financial reports of enterprises has been widely concerned by the capital market.Then,will the hedging of listed companies affect the synchronism of stock prices in China's stock market? However,the incompatibility of fair value measurement standards with the Chinese market environment and the complexity of hedging information disclosure have affected the reliability of corporate accounting information quality,so whether the reliability of accounting information is positive or negative for the reliability of accounting information quality.What about the impact? Among many information,accounting information,as a company-level information,is one of the effective information that investors can obtain and make decisions,so it has become an important factor affecting stock price fluctuations.The use of derivatives by listed companies for hedging may have an impact on the quality of their accounting information,and the quality of accounting information will affect the degree to which the stock price reflects the company's characteristic information,so does the quality of accounting information play an intermediary role between hedging and the synchronism of stock price? In view of the above analysis,this paper takes the quality of accounting information as an intermediary variable when studying the impact of hedging on stock price synchronization,and discusses the mechanism of hedging on stock price synchronization.This paper selects all A-shares in China from 2007 to 2016 as sample data for regression.The study finds that there is a significant positive correlation between hedging and stock price synchronicity,and there is a significant negative correlation between hedging and accounting information quality.After that,using the new mediating effect test method,it is concluded that the quality of accounting information does not play the mediating role between hedging and the synchronism of stock price.Finally,the paper uses the propensity matching score method and the measure of stock price synchronization to conduct the robustness test.After the regression,the results are stable.This article mainly has the following two aspects of innovation.Innovation in research perspective: Studying the impact of hedging on stock price synchronicity,enriching the literature on the factors affecting stock price synchronicity from the micro level.Innovation of research content: taking the quality of accounting information as the mediating variable,this paper explores the mechanism of the effect of hedging on the synchronism of stock price,and finds that the quality of accounting information does not exert mediating effect,but inhibiting effect.In addition to further study the types of hedging on the stock price synchronization may have different effects.