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

Received: 1 November 2018     Accepted: 27 November 2018     Published: 2 January 2019
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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.

Published in American Journal of Operations Management and Information Systems (Volume 3, Issue 4)
DOI 10.11648/j.ajomis.20180304.11
Page(s) 74-80
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Voluntary Information Disclosure, Stock Price Synchronicity, Financial Status

References
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[9] Zhang B. Z., Niu J. J. and Wang H. T. (2016). Voluntary Information Disclosure, Accounting Standards Change and Stock Price Synchronicity. Communication of Finance and Accounting, 7, 3-7.
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[11] Fama, Eugene F. (1965). The Behavior of Stock Market Price. Journal of Business, 38 (1), 34-105.
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  • APA Style

    Zhang Benzhao, Xie Xuan. (2019). Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies. American Journal of Operations Management and Information Systems, 3(4), 74-80. https://doi.org/10.11648/j.ajomis.20180304.11

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    ACS Style

    Zhang Benzhao; Xie Xuan. Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies. Am. J. Oper. Manag. Inf. Syst. 2019, 3(4), 74-80. doi: 10.11648/j.ajomis.20180304.11

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    AMA Style

    Zhang Benzhao, Xie Xuan. Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies. Am J Oper Manag Inf Syst. 2019;3(4):74-80. doi: 10.11648/j.ajomis.20180304.11

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  • @article{10.11648/j.ajomis.20180304.11,
      author = {Zhang Benzhao and Xie Xuan},
      title = {Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies},
      journal = {American Journal of Operations Management and Information Systems},
      volume = {3},
      number = {4},
      pages = {74-80},
      doi = {10.11648/j.ajomis.20180304.11},
      url = {https://doi.org/10.11648/j.ajomis.20180304.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20180304.11},
      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.},
     year = {2019}
    }
    

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    T1  - Relationship Between Voluntary Disclosure, Stock Price Synchronicity and Financial Status: Evidence from Chinese Listed Companies
    AU  - Zhang Benzhao
    AU  - Xie Xuan
    Y1  - 2019/01/02
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    DO  - 10.11648/j.ajomis.20180304.11
    T2  - American Journal of Operations Management and Information Systems
    JF  - American Journal of Operations Management and Information Systems
    JO  - American Journal of Operations Management and Information Systems
    SP  - 74
    EP  - 80
    PB  - Science Publishing Group
    SN  - 2578-8310
    UR  - https://doi.org/10.11648/j.ajomis.20180304.11
    AB  - 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.
    VL  - 3
    IS  - 4
    ER  - 

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Author Information
  • Industrial Information and Center for Economic Research, Hefei University of Technology, Hefei, China

  • School of Economics, Hefei University of Technology, Hefei, China

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