Economic policy uncertainty and stock price synchronicity: Evidence from China

Shen, Huayu; Liu, Runxin; Xiong, Hao; Hou, Fei; Tang, Xiaoyi

doi:10.1016/j.pacfin.2020.101485

Cited by 25 publications

(14 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The coefficients on fixed asset ratio are found to be insignificant. The coefficients on the control variables are generally consistent with prior studies ( Gul et al, 2010 ; Boubaker et al, 2014 ; Shen et al, 2021 ).…”

Section: Empirical Results and Analysissupporting

confidence: 84%

Returnee Executives, Corporate Social Responsibility, and Stock Price Synchronicity

2022

View full text Add to dashboard Cite

Executive characteristics have a significant impact on corporate decision-making, corporate sustainable behavior, and stock market performance, which may influence the corporations’ sustainable development in the long run. The role of returnee talents in the corporate sustainable development has received extensive academic attention. Using data of Chinese A-share listed companies over the period of 2008–2018, we find that there is a negative relationship between executives’ foreign experience and stock price synchronicity. We also prove that corporate social responsibility (CSR) has a significant mediating effect on the relationship between returnee executives and stock price synchronicity. The returnee executives tend to pursue long-term sustainable activities and improve CSR engagement quality, thereby reducing stock price synchronicity. Our extended analysis reveals that the benefit of returnee executives is more pronounced for non-SOEs and for firms located in regions with a low degree of marketization. This study has some implications for the Chinese firms in relation to their CSR information disclosure behavior, and it gives suggestions to strengthen capital market efficiency for the sustainable development of corporations.

show abstract

Section: Empirical Results and Analysissupporting

confidence: 84%

Returnee Executives, Corporate Social Responsibility, and Stock Price Synchronicity

2022

View full text Add to dashboard Cite

show abstract

“…EPU has been documented as a determinant of stock volatility (e.g., Liu and Zhang, 2015 ; Baker et al, 2016 ; Li et al, 2020 ; Shen et al, 2020 ). As essential empirical evidence among the numerous studies focusing on the impact of the COVID-19 pandemic, Altig et al (2020) reveal that all economic policy uncertainty (EPU) indicators, including implied stock market volatility, newspaper-based EPU index, Twitter chatter about EPU, subjective uncertainty about business growth, forecaster disagreement about future GDP growth, and a model-based measure of macro uncertainty, reached its highest point as recorded during the COVID-19 pandemic.…”

Section: Introductionmentioning

confidence: 99%

Economic policy uncertainty, COVID-19 lockdown, and firm-level volatility: Evidence from China

Yang

2021

Pacific-Basin Finance Journal

View full text Add to dashboard Cite

“…Stock price information can reflect not only the comprehensive effect of factors such as the degree of information asymmetry and the level of internal and external governance of the company, but also an important index to measure the efficiency of market information transmission. In the research on the influencing factors of stock price information, some scholars found that when facing the uncertainty of economic policy, enterprises have the motivation to spread more information, which may lead to the decline of stock price [ 11 ]. High quality audit improves governance, reduces information asymmetry between insiders and investors, and enhances the impact of enterprise specific information on stock price [ 12 ].…”

Section: Relevant Theories and The Hypothesis Of This Studymentioning

confidence: 99%

An Empirical Study on the Relationship between Stock Price Information and Enterprise Innovation Management Based on Information Learning Mechanism

Bai

2022

Computational Intelligence and Neuroscience

View full text Add to dashboard Cite

The capital market economy had created a good environment for the development of enterprises, and innovation had brought great impetus to the sustainable development of enterprises. However, the research on the relationship between stock market and enterprise innovation was not deep enough. Therefore, this paper proposed an empirical study on the relationship between stock price information and enterprise innovation management based on information learning mechanism, in order to provide reference for enterprise innovation and development. Firstly, taking the A-share listed enterprises from 2005 to 2020 as the research sample, this paper analyzed the factors that may affect the innovation behavior of enterprises, such as enterprise stock price information, peer stock price information, and IPO, and put forward relevant assumptions. Secondly, according to various factors that restrict the innovation behavior of enterprises, this paper defined relevant indicators to reflect the change law of enterprise stock price information, peer stock price information, and IPO and described the restrictive relationship between exploratory innovation and developmental innovation with different influencing factors by constructing a correlation regression model. Finally, through empirical analysis, the results show that exploratory innovation and developmental innovation are not affected by the enterprise’s own stock price information, but with the increase of peer stock price information, enterprise exploratory innovation becomes more sensitive to peer stock price information. Although the share price information of peers has no significant impact on enterprise development and innovation, after IPO, enterprises are more sensitive to the share price information of peers in exploratory innovation and developmental innovation. However, with the passage of time, the impact of peer stock price information on enterprise developmental innovation is gradually weakened.

show abstract

Economic policy uncertainty and stock price synchronicity: Evidence from China

Cited by 25 publications

References 35 publications

Returnee Executives, Corporate Social Responsibility, and Stock Price Synchronicity

Returnee Executives, Corporate Social Responsibility, and Stock Price Synchronicity

Economic policy uncertainty, COVID-19 lockdown, and firm-level volatility: Evidence from China

An Empirical Study on the Relationship between Stock Price Information and Enterprise Innovation Management Based on Information Learning Mechanism

Contact Info

Product

Resources

About