Fintech And Stock Price Synchronization

In recent years,China’s financial technology industry has developed rapidly,and the state has issued a series of supporting policies and regulatory measures.In 2014,Internet finance was written into the government work report.In September 2019,the people’s Bank of China issued the first top-level document regulating the development of financial technology.With the increasing application scenarios of financial technology,many non-financial enterprises have also "crossed the border" to carry out financial technology business through new establishment,merger and acquisition of financial technology subsidiaries and strategic cooperation.In view of the frequent occurrence of abnormal stock prices of fintech stocks and the trend of stock prices out of the market,this may indicate that fintech will make the stock prices of enterprises more "personalized".Then,will an enterprise’s financial technology business have an impact on its stock price?If so,how does this impact occur?Firstly,financial technology can play a role in the problem of information asymmetry.Its application can make information more orderly.Listed companies can improve the quality of accounting information and enterprise transparency with the help of financial technology,so as to reduce the synchronization of stock prices.Secondly,non-financial listed companies carry out financial technology business,promote the transformation of enterprise business model,adjust business structure and promote the realization of enterprise strategic layout,so as to improve fundamentals,alleviate enterprise financing constraints,reduce the motivation to hide inferior information to obtain funds,and reduce the synchronization of stock prices.Thirdly,after the listed companies carry out financial technology business,the quality of information disclosure increases and then transmitted to the analyst level,which helps the analyst to provide more accurate interpretation of enterprise information,so as to reduce the synchronization of enterprise stock price.Finally,when listed companies carry out financial technology business,the implementation of industrial policies will also reduce the synchronization of stock prices.This thesis uses whether listed companies set up fintech subsidiaries and the registered capital of fintech subsidiaries to measure fintech.Using Shanghai and Shenzhen A-share listed companies from 2010 to 2020 as sample data,this thesis tests the impact of fintech business on their stock price synchronization,and verifies the mechanism of fintech affecting stock price synchronization.The results show that the stock price synchronization of listed companies engaged in financial technology business is lower,and this reduction effect is more significant in private enterprises,low capital intensive enterprises and high market-oriented areas;Using the stock price formation mechanism to test this reduction effect,it is found that the financial technology business of listed companies has led to the integration of more enterprise level characteristic information into the stock price by improving the quality of information disclosure(information transparency,accounting conservatism and comparability of accounting information)and strengthening the effect of information interpretation(Analysts’attention,research reports’ attention and investors’ attention),So as to reduce the synchronization of stock prices.This thesis analyzes the mechanism of financial technology business affecting the stock price synchronization of listed companies,expands the research on the application effect of financial technology and the influencing factors of stock price synchronization,and shows that the development of financial technology by Listed Companies in China not only contributes to the transformation and development of the industry,but also promotes the improvement of stock price heterogeneity of enterprises and the transmission of effective information between enterprises and investors,Promoting the integration of enterprise level information into enterprise stock price is conducive to investors’ re-understanding of the role of financial technology in China’s capital market.