Media Attention and the Synchronization of Listed Companies' Stock Prices
DOI:
https://doi.org/10.54097/hbem.v2i.2407Keywords:
Media attention, Stock price synchronization, Pricing efficiency.Abstract
The influence of media releases on the synchronization of listed businesses' stock prices is examined in this paper using data on the A-share market from 2009 to 2020. The study's discoveries indicate that the higher media exposure can significantly reduce the synchronization of stock prices of listed companies, thereby helping to improve the company's stock pricing efficiency. The conclusion remains robust after excluding special samples and replacing core explanatory variables for robustness analysis. Further analysis of the heterogeneity according to the size of firms listed on the stock market and the nature of their property rights shows that media reports have a substantial influence on the synchronization of stock prices of private enterprises and small-scale enterprises, and relatively little impact on the stock price synchronization of government-owned businesses and large-scale enterprises. The study's findings have theoretical merit as well as practical implications for enhancing a company's stock price effectiveness and preserving market stability.
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