| Although in recent years,China’s stock market has developed rapidly and its structure has become more and more perfect,from the actual situation,China’s securities market still has deficiencies.Individual investors in the stock market have strong speculative ideas,and their investment ideas are short-term.In particular,there is a short-term phenomenon in the judgment of market hot spots.In the face of market fluctuations,the mood of individual investors fluctuates violently,which leads to more irrational fluctuations in stock prices.This irrational fluctuation causes the stock prices of different companies to change synchronously with the market out of their business conditions,This phenomenon is also called stock price synchronization.Price is an important basis for realizing the effective allocation of resources.An accurate price system can improve the efficiency of resource allocation,but the problem of stock price synchronization makes it difficult for the company’s stock price to reflect its operating conditions,which makes investors unable to judge the company’s quality through the stock price and destroys the company’s signal transmission mechanism,which will obviously reduce the efficiency of resource allocation in China’s capital market,It has a negative impact on the development of China’s stock market.In view of the above,this paper first combs and summarizes the literature on investor sentiment and stock price synchronization at home and abroad,finds that the existing literature deeply studies the influencing factors of stock price synchronization from the two aspects of "information efficiency" and "irrational behavior",explores the measurement indicators reflecting investor sentiment,and obtains the "fundamental factors" "Irrational behavior" or the synergy of the two are the reasons that affect the synchronization of stock prices.Secondly,this paper combs the noise trading theory,irrational cognitive bias and herding effect as the theoretical basis,which lays a theoretical foundation for further exploring the impact mechanism of individual investor sentiment on stock price synchronization.Based on the above theory,this paper deeply analyzes the influence mechanism of individual investor sentiment on stock price synchronization,and its transmission path is divided into four parts.Firstly,investors will have emotional changes due to cognitive bias when facing market information;Secondly,from the derivation results of noise trader model,it can be seen that the change of investor sentiment will lead to the change of risk asset pricing;Thirdly,the herd effect model is introduced to explain the causes of group irrational behavior;Finally,it expounds the phenomenon of stock price synchronization caused by group irrational behavior based on classification selection,asset "habitat selection" and information diffusion investment.Through the analysis of the transmission mechanism,it is found that information dredging can reduce the impact of noise on individual investor sentiment,and can put forward effective policy suggestions according to its transmission path to block the formation of stock price synchronization.In order to verify the content of the above theoretical analysis,based on the monthly data of China’s A-share listed companies from 2016 to 2020 provided by guotai’an database and Guba database in cnrds database,using antweiler and frank(2004)for reference,this paper constructs the irrational emotion index of individual investors by using stata15,and empirically tests its relationship with the synchronization of stock price through fixed effect model.The empirical results show that,In order to further analyze the relationship between the two,this paper introduces the company’s listing years,the proportion of institutional holdings,the quality of external audit and first tier cities as regulatory variables to test their impact on the relationship between the two.The results show that the four regulatory variables can significantly weaken the positive correlation between the two.In order to test the robustness of the empirical results,this paper first brings the industry and market return that lags behind the first period into the original model,reconstructs the index of stock price synchronization,and returns again.The empirical results are still stable;Secondly,in order to control the influence of endogeneity,the independent variables and control variables are regressed after one period,and the results remain unchanged.In order to further control the influence of endogeneity on the empirical results,this paper also selects the social financing scale and consumer expectation index as instrumental variables for re regression,and the empirical results still support the hypothesis of this paper.By summarizing the conclusions drawn from the above empirical results,this paper puts forward the following policy suggestions in order to block the formation of stock price synchronization: standardize the speech of stock bar and severely punish those who post maliciously;Strengthen the communication with investors through the network platform and improve the information transmission mechanism of the company;Popularize relevant investment knowledge and help individual investors improve their investment ideas;Encourage enterprises to help each other and improve the company’s experience and ability to deal with risks;Improve the illegal cost of external audit and enhance its audit quality;Encourage the development of institutional investors and reduce the risk of market disorder;Encourage information sharing among enterprises and strengthen the management of media. |
