Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies

摘要

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.