Research On The Impact Of Independent Director Network On Stock Price Synchronizatio

In recent years,in the context of the widespread existence of chain independent directors in China’s listed companies,the independent director network,a channel for information and resource exchange between listed companies,has been established through the cross-appointment of independent directors.Independent directors,as supervisors and decision makers of the company,bear great responsibility for corporate governance.According to the social network theory,the network location of independent directors will affect the independent directors’ access to social capital from the network.The independent directors in an important position have stronger ability to access information and resources,and their role in corporate governance is also more prominent.Therefore,based on the perspective of social network analysis,this paper hopes to study the relationship between the network of independent directors and the synchronization of stock prices,in order to improve the information efficiency of the capital market,and provide reference for reducing the synchronization of stock prices and stabilizing the capital market.The innovation of this article lies in enriching the research on the network of independent directors.Previous literature has focused more on the economic consequences of independent directors based on their individual attributes,and less on the relationship between independent directors and stock price synchronicity from the perspective of social networks.This article chooses to study the impact of independent director networks on stock price synchronicity,enriching relevant research on stock price synchronicity and providing new evidence on how independent directors play a role in corporate governance.Secondly,this paper places the independent director network and stock price synchronicity in the same model,selects the perspective of information transparency and principal-agent,examines the mechanism of the impact of independent directors’ social networks on stock price synchronicity,and reveals the impact path of the ubiquitous relationship networks on stock price synchronicity in China’s traditional relational society.The research conclusions of this article have certain enlightening effects on strengthening capital market regulation and improving the corporate governance system of listed companies.This article first analyzes the impact and mechanism of independent director networks on stock price synchronicity from a theoretical perspective.Based on the perspective of social network centrality,this study empirically analyzes the impact of independent director network location on stock price synchronization.Listed companies in the Chinese A-share market from 2007 to 2019 in CSMAR and WIND databases were selected as research samples,and the mechanism of the impact of independent director network on stock price synchronization was explored from the perspectives of information transparency and principal-agent problems.Further analyze the impact of independent director networks on stock price synchronicity from the perspectives of financialization level,internal governance level,separation of roles,government enterprise relationship,and external supervision.The study found that the stronger the centrality of independent director network,the higher the synchronization of stock price.Specifically,the more independent directors are connected in the network,the more important the intermediary role they play in the interconnected relationship of directors,which makes the company’s stock price synchronization higher.The mechanism analysis indicates that the influence mechanism of independent director network on stock price synchronization is mainly realized by affecting the transparency of the company’s information and the principal-agent relationship.The effect of independent director network on stock price synchronization shows obvious heterogeneity.Namely,the stock price synchronization is higher in companies with lower degree of financialization,poorer level of internal governance,separation of positions between chairman and general manager,weaker relationship between government and enterprises,as well as stronger external supervision.The research results provide reference for reducing noise trading in the market,reducing the synchronization of stock price and stabilizing the capital market from the perspective of information efficiency of capital market.