Research On The Impact Of Media Coverage On Stock Price Synchronizatio

This paper is based on the urgent requirements of the overall national security concept on emphasizing the prevention and resolution of financial risks and maintaining financial security,and focuses on the important tasks of deepening financial reform and opening up,building a financial systems and mechanisms that effectively support the real economy,further optimizing the financial system structure and improving the operating efficiency of the financial market with the help of capital market reform in the report of the Twentieth National Congress.In line with the continuous advancement of the wave of social informatization and the general trend of media integration,based on the theory of behavioral finance,this paper firstly analyzes the differential impact of positive and negative media reports on the synchronicity of stock prices from the theoretical level and explains the reasons.Secondly,this paper uses a total of 21,382 annual data of listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2020 as research samples to examine the impact of positive and negative media reports on the synchronization of stock prices.Then,from the perspective of analysts’ attention and investors’ heterogeneous beliefs,this paper explores the moderating effect of the relationship between negative media reports and stock price synchronization.Finally,according to the marketization degree,the quality of information disclosure,the retransmission rate of media reports and the level of corporate internal governance and other aspects of individual differences are tested.The research results of this article indicate that there are differences in the impact of different types of media coverage on stock price synchronicity.Positive media coverage shows a significant positive correlation with stock price synchronicity.The higher the proportion of positive media coverage in the capital market of listed companies,the higher their stock price synchronicity;There is a significant negative correlation between negative media coverage and stock price synchronicity.The higher the proportion of negative media coverage in the capital market of listed companies,the lower their stock price synchronicity.There are two reasons for this: on the one hand,readers have a preference for positive and negative media reports,and the dissemination power of negative reports is significantly stronger than that of positive reports;On the other hand,management has a tendency to hide negative news and release it centrally at specific times or critical points.In addition,the results of the mechanism test prove that negative media coverage can play an important role in information transmission,alleviating the problem of information asymmetry in the capital market and thereby reducing stock price synchronicity.At the same time,the increase in analyst attention and the enhancement of investors’ heterogeneous beliefs will weaken the reducing effect of negative media coverage on stock price synchronicity.In the expansion analysis,the study found that the differential impact of positive and negative media coverage on stock price synchronicity is more significant in listed companies with faster marketization,lower information disclosure quality,poor internal governance level,and high market sentiment.The research results are of great significance for reducing stock price synchronicity and maintaining the healthy and stable development of the capital market.