Study on Voluntary Information Disclosure and Stock Price Synchronicity: Evidence from Chinese Listed Companies

Abstract

This paper uses Shanghai and Shenzhen 300 index constituent stocks to analyze the effect of the degree of voluntary information disclosure on Chinese stock price synchronicity from two dimensions: quantity and quality. Meanwhile, this paper discusses how the changes in accounting rules influence the relationship between voluntary information disclosure and stock price synchronicity. The result shows that voluntary information disclosure is negatively related to stock price synchronicity. Moreover, the improvement of accounting standards, on the one hand, is likely to decrease stock price synchronicity; and on the other hand, increases the negative relationship between voluntary information disclosure and stock price synchronicity.