Research On The Impact Of Corporate Finance On Stock Price Synchronization

In recent years,China’s financialization trend has become increasingly prominent and it has had an increasingly important impact on the capital market.As for the relatively mature and mature securities market,China’s stock market has significant differences in such aspects as the completeness of the mechanism,the soundness of regulations,and the maturity of investors.The market fluctuates more frequently,and the phenomenon of“same ups and downs”is more obvious.The stock price reflects less company-specific information,which weakens the function of stock price identification and feedback of the company’s intrinsic value.As an important manifestation of capital pricing efficiency,stock price synchronicity plays a key role in inhibiting the“demobilization from reality”to realize financial services to the real economy.Each theoretical school has its own explanation for how the stock price synchrony is formed,and there is no conclusion till now.The definition of the concept of stock price synchronization can generally be understood as that the price of a single stock is consistent with the overall market changes.Therefore,it can be seen that this factor reflects the systemic risk of the market and is a measure of the market,industry and company Stock price linkage indicator.Information efficiency scholars believe that stock price synchronization is related to the content of stock information.From the perspective of trait income changes,a smaller R~2 represents the company’s stock price is inconsistent with the market trend.However,with the imbalance of the development of the securities market and the practical problems in actual operation,more researchers have begun to pay attention to other factors other than information,such as noise.This has led to the interpretation of the synchronization of stock prices into two schools:information efficiency School and Noise Explaining School.Scholars of the information efficiency school(Roll,1988)think that the company has more trait information will lead to low stock price synchronization,while the non-rational behavior school(West,1988)thinks that the interference factor in the market is the stock price synchronization Sexual reasons.Based on the research background of Chinese enterprises’large-scale allocation of financial assets,this paper explores its impact on stock price synchronization.The empirical tests based on the data of Chinese A-share listed companies from 2007 to2018 show that:(1)The degree of financialization of physical enterprises has a positive correlation with the synchronization of stock prices,and this significant impact is mainly caused by holding transactional financial assets and available-for-sale financial assets;(2)compared with state-owned enterprises,the financialization of non-state-owned enterprises’physical enterprises has a more significant impact on stock price synchronization,because State-owned enterprises’financial constraints are more severe,the motivation and degree of financialization will be stronger and there will be a more opaque information environment;(3)Analyst attention plays a positive regulating role between corporate financialization and stock price synchronization,because higher analyst attention will strengthen the motivation of companies to financialize and the reports issued by analysts are more based on the industry Macro information;(4)A low degree of marketization and quality of internal control means a poor internal and external environment.At this time,the relationship between corporate financialization and stock prices is significantly positively related.This article studies the consequences of corporate financialization and the influencing factors of stock price synchronization from a new perspective.The conclusion provides a new explanation for the influencing factors of stock price synchronization in our country and enriches the economic consequences of financialization of entity enterprises.From a theoretical and practical perspective,it can also better promote financial services to the real economy,improve the transparency of China’s stock information,improve the investment environment for investors,and promote the improvement of China’s capital market supervision to create a healthy and sustainable development of the securities market.