Volume 3, Issue 4, December 2018, Page: 74-80
Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies
Zhang Benzhao, Industrial Information and Center for Economic Research, Hefei University of Technology, Hefei, China
Xie Xuan, School of Economics, Hefei University of Technology, Hefei, China
Received: Nov. 1, 2018;       Accepted: Nov. 27, 2018;       Published: Jan. 2, 2019
DOI: 10.11648/j.ajomis.20180304.11      View  169      Downloads  24
Abstract
The purpose of this paper is to explore how a company’s voluntary information disclosure influences its stock price synchronicity and how the company’s financial status influences the relationship between voluntary information disclosure and stock price synchronicity. This study utilizes the panel regression model with the data of Shanghai and Shenzhen 300 Index constituent stocks from 2010 to 2017 in Chinese stock market to analyze the relationship between voluntary information disclosure and stock price synchronicity and how financial status influences the relationship. The results show that voluntary information disclosure is negatively related to stock price synchronicity. The financial status in general is likely to decrease stock price synchronicity. However the three different indictors, profitability, solvency and development ability, of financial status have different impacts on the relationship between voluntary information disclosure and stock price synchronicity. The company’s profitability strengthens the relationship of voluntary information disclosure and stock price synchronicity. While the solvency and the development ability have little impact on the relationship. It can be seen that investors are paying more attention to the intrinsic value of the companies and the quality of the Chinese stock market is obviously improving. Based on the results the paper proposes some useful suggestion in the end.
Keywords
Voluntary Information Disclosure, Stock Price Synchronicity, Financial Status
To cite this article
Zhang Benzhao, Xie Xuan, Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies, American Journal of Operations Management and Information Systems. Vol. 3, No. 4, 2018, pp. 74-80. doi: 10.11648/j.ajomis.20180304.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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