Research on the Influence of Strategic Difference on Stock Price Synchronization
DOI:
https://doi.org/10.54097/fbem.v7i2.4893Keywords:
Strategic difference, Equity concentration, The nature of property rights, Stock price synchronization.Abstract
Stock price synchronization is an important index to measure the content of idiosyncratic information in a company's stock price. Taking the increasingly fierce market competition as the background, this paper discusses the relationship between strategic difference and stock price synchronization in China's stock market with more noise trading, and considers the influence of property right nature and ownership concentration on this relationship. The results show that: (1) the higher the difference of corporate strategy, the lower the synchronization of stock price; (2) State owned enterprises and ownership concentration can promote the negative correlation between them. From the new perspective of noise interpretation, this study finds that when noise trading becomes the main influencing factor of stock price synchronization, a higher degree of strategic difference will increase the degree of corporate information asymmetry, cause investors to blindly follow the crowd and other more irrational noise trading, improve the heterogeneous fluctuation level of stock price, and then reduce the level of stock price synchronization.
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