Major Individual Shareholders and Stock Price Synchronicity
DOI:
https://doi.org/10.54097/z1sgwq50Keywords:
Major Individual Shareholder, Stock Price Synchronicity, Information Transparency.Abstract
The phenomenon of”co-movement in rise and fall”of stock prices is prominent in China’s capital market.High stock price synchronicity is detrimental to the stable development of the capital market.Using Chinese A-share listed firms from 2007 to 2024 as the research sample,this paper empirically examines the impact of shareholding by major individual shareholders on stock price synchronicity.The results show that the shareholding ratio of major individual shareholders is negatively correlated with stock price synchronicity,and this conclusion remains robust after robustness and endogeneity tests.Heterogeneity analysis indicates that the inhibitory effect is stronger when internal power concentration is higher and shareholding changes are more volatile,while high audit quality and high analyst coverage weaken this effect.Mechanism analysis reveals that major individual shareholders improve information transparency by reducing agency costs and curbing earnings management,thereby lowering stock price synchronicity.This paper clarifies the influence path of major individual shareholders on stock price synchronicity,providing empirical evidence for optimizing ownership structure,enhancing information efficiency in the capital market,and supporting high-quality economic development.
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