scholarly journals XBRL Adoption and Capital Market Information Efficiency

2021 ◽  
Vol 29 (6) ◽  
pp. 1-18
Author(s):  
Lei Ruan ◽  
Heng Liu ◽  
Sangbing Tsai
Keyword(s):  
Capital Market ◽  
Stock Price ◽  
Specific Information ◽  
Market Information ◽  
Global Business ◽  
Financial Reports ◽  
Stock Price Synchronicity ◽  
Information Efficiency ◽  
Business Reporting ◽  
The Impact

As a common standard for global business reporting, eXtensible Business Reporting Language (XBRL) can make up for the deficiencies of traditional financial reports in terms of standardized disclosure and information use costs, and provide firm-specific information to report users, reduce the level of corporate stock price synchronicity, and then improve capital market information allocation efficiency. Based on the financial data of Chinese listed companies from 2005 to 2011, this paper mainly focuses on the impact of XBRL adoption on stock price synchronicity.

scholarly journals XBRL Adoption and Capital Market Information Efficiency

2021 ◽  
Vol 29 (6) ◽  
pp. 0-0
Keyword(s):  
Capital Market ◽  
Stock Price ◽  
Specific Information ◽  
Market Information ◽  
Global Business ◽  
Financial Reports ◽  
Stock Price Synchronicity ◽  
Information Efficiency ◽  
Business Reporting ◽  
The Impact

As a common standard for global business reporting, eXtensible Business Reporting Language (XBRL) can make up for the deficiencies of traditional financial reports in terms of standardized disclosure and information use costs, and provide firm-specific information to report users, reduce the level of corporate stock price synchronicity, and then improve capital market information allocation efficiency. Based on the financial data of Chinese listed companies from 2005 to 2011, this paper mainly focuses on the impact of XBRL adoption on stock price synchronicity.

Can microblogging information disclosure reduce stock price synchronicity? Evidence from China

2018 ◽  
Vol 44 (2) ◽  
pp. 282-305 ◽  
Author(s):  
Donghua Zhou ◽  
Yujie Zhao ◽  
Philip T Lin ◽  
Bin Li ◽  
Adrian (Waikong) Cheung
Keyword(s):  
Stock Prices ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Relationship ◽  
Jel Classification ◽  
Specific Information ◽  
Chinese Stock Market ◽  
Stock Price Synchronicity ◽  
Alternative Measures ◽  
The Impact

We study the relationship between stock price synchronicity and information disclosure of firms listed in the Chinese stock market, using hand-collected data on firms’ official microblogging content in Sina Weibo, a popular microblogging service in China. We find that after controlling for the impact of traditional media, the number of Weibo tweets is related negatively to stock price synchronicity, indicating that stock prices incorporate firm-specific information disclosed in the firm’s official Weibo. Number of microblogging fans can strengthen this negative relationship. Our result is robust to alternative measures of stock price synchronicity, microblogging information disclosure, and to endogeneity issues. JEL Classification: G14, G15

scholarly journals Is the Social Responsibility Information Disclosed by the Companies really Valuable?—Evidence from Chinese Stock Price Synchronicity

2018 ◽  
Vol 10 (10) ◽  
pp. 3578 ◽  
Author(s):  
Jingwen Dai ◽  
Chao Lu ◽  
Yang Yang ◽  
Yanhong Zheng
Keyword(s):  
Social Responsibility ◽  
Capital Market ◽  
Stock Price ◽  
Listed Companies ◽  
Market Pricing ◽  
Stock Price Synchronicity ◽  
Pricing Efficiency ◽  
Significant Difference ◽  
The Media ◽  
The Impact

Social responsibility information disclosed by listed companies is an important way to transfer non-financial information to the stock market, which affects the level of stock price synchronicity. In order to explore whether Corporate Social Responsibility (CSR) information is valuable in improving capital market pricing efficiency, this paper conducted empirical research based on a sample of China Shanghai and Shenzhen A-share listed companies in years 2010–2015. The results showed that: (1) Overall, there is a significant positive correlation between CSR information and stock price synchronicity; (2) under different disclosure motives, there is no significant difference in the impact of CSR on stock price synchronicity; (3) Securities analysts and institutional investors can negatively regulate the positive relationship between CSR and stock price synchronicity, while the media will intensify the positive effect of CSR on stock price synchronicity. This research is of great significance in promoting the fulfillment of CSR and improving capital market pricing efficiency.

scholarly journals Informational Consequences of Mandatory IFRS Adoption in China

2018 ◽  
Vol 8 (3) ◽  
pp. 295
Author(s):  
Archana Patro
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Demand Elasticity ◽  
Future Price ◽  
Multivariate Techniques ◽  
Specific Information ◽  
Stock Price Synchronicity ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
The Impact

In China, International Financial Reporting Standards (IFRS) have become mandatory for listed firms in 2007. While earlier research on “voluntary” adopters has provided valuable insights on the impact of IFRS disclosure, these results cannot be generalised in a mandatory setting. We expect effects from mandatory IFRS adoption to be different from those documented for voluntary IFRS adopters since the former group is essentially forced to adopt IFRS. The empirical model, relating to stock price synchronicity with adoption of IFRS, and other firm-specific control variables were analysed using both univariate and multivariate techniques. Different types of panel data estimates were used and compared so as to interpret the results with the best-suited parameters for different data sets for different markets. Studying data covering the period from 2001-2013, the present study examines whether mandatory adoption of IFRS reduces Stock Price Synchronicity for Chinese firms. The empirical results show that IFRS adoption improves information environment by the capitalization of firm-specific information into stock prices, thereby reduces the Stock Price synchronicity. The paper further examines if the information impact was homogeneous across industries. This pattern of decrease in stock price synchronicity after adoption of IFRS is different for different industries taken for analysis. Aerospace & Defense, Automobiles Beverages, Metals & Mining, Retailer& Real Estate Operations have reduced synchronicity but other industries such as Biotech, Electric utilities, Electronic, Leisure products, Renewable energy and Telecom have increased synchronicity. For these industries, the low reliance on market wide information makes reasonable economic sense because they have relatively low demand elasticity. Hence, in demand inelastic industries, future price sensitive factors remain constant and so a changed IFRS accounting regime has little marginal impact. This study provides a different methodological approach by concentrating on Industry wide information effects from the mandatory adoption. These findings have important implications that apply not only to China, but also to other emerging and transitional economies such as India where IFRS is yet to be mandated. Moreover it will help regulators, academicians and practitioners to assess the informational benefit of adopting IFRS.

scholarly journals The effects of industry characteristics on stock price synchronicity around IFRS adoption

2019 ◽  
Vol 16 (1) ◽  
pp. 89-99
Author(s):  
Hyejeong Shin
Keyword(s):  
Capital Market ◽  
Stock Price ◽  
Earnings Quality ◽  
Industry Concentration ◽  
Specific Information ◽  
Stock Price Synchronicity ◽  
Ifrs Adoption ◽  
Incremental Effect ◽  
Adoption Effect ◽  
Korean Market

The purpose of this paper is to investigate whether a change in stock price synchronicity after IFRS adoption differs by industry characteristics. IFRS adoption was expected to improve earnings quality and comparability. Industry concentration and homogeneity are utilized as industry characteristics, which are known as determinants to earnings quality and comparability to examine IFRS adoption effect on the synchronicity. Using Korean firms listed from 2006 to 2015, the author found that stock price synchronicity decreases after IFRS adoption. The reduction in synchronicity is larger for firms in a concentrated industry. However, the researcher didn’t find that incremental effect of homogeneity on synchronicity changes around IFRS adoption. These results remain unchanged after several robustness tests. The results imply that earnings quality after IFRS adoption improves, while comparability effect is not evident in the Korean market. The paper has implications that co-movement of stock price decreases after IFRS adoption in that delivering firm-specific information to investors; in addition, the magnitude of impacts of IFRS adoption differs by the industry characteristics. The author extends prior studies about IFRS adoption effect on the capital market by providing that the effects need to be examined after considering the industry characteristics.

scholarly journals Analysis of Securities Analysts Impact on China’s Capital Market Efficiency

2016 ◽  
Vol 2 (1) ◽  
pp. 110
Author(s):  
Bing Yang ◽  
Xiaolin Li
Keyword(s):  
Market Efficiency ◽  
Capital Market ◽  
Stock Price ◽  
Allocation Of Resources ◽  
Stock Price Synchronicity ◽  
Empirical Results ◽  
Regulatory Authorities ◽  
Securities Analysts ◽  
Securities Industry ◽  
The Impact

This paper explores the impact of securities analysts on China’s capital market efficiency from the perspective of the stock price synchronicity. Empirical results show that increased securities analysts can improve capital market efficiency, but this effect is limited with economical insignificant. We recommend that the Chinese Securities’ Regulatory Authorities need to further the reform of the securities industry consulting system, thus enhance the capital market efficiency of allocation of resources.

Analysts' Information Acquisition and Stock Price Synchronicity: A Regulatory Perspective from China

2018 ◽  
Vol 33 (1) ◽  
pp. 153-179 ◽  
Author(s):  
Haiyan Jiang ◽  
Donghua Zhou ◽  
Joseph H. Zhang
Keyword(s):  
Insider Trading ◽  
Private Information ◽  
Stock Prices ◽  
Information Acquisition ◽  
Stock Price ◽  
Specific Information ◽  
Stock Price Synchronicity ◽  
Playing Field ◽  
Information Advantage ◽  
Private Information Acquisition

SYNOPSIS Against the backdrop of the Chinese Directive 40 (China's Reg FD) issued in 2007 as an attempt to curb insider trading and to level the information playing field, this study investigates whether analysts' private information acquisition influences the extent to which firm-specific information is impounded into stock prices, i.e., stock price synchronicity, and how the restrictions on selective disclosures imposed by Directive 40 have shaped the relationship between analyst information acquisition and synchronicity. Using a pre-Directive 40 sample, we show that synchronicity is negatively related to analysts' private information acquisition, which provides support for the “information advantage” argument of analysts' information production. However, the ability of analysts' private information acquisition in improving firm-specific information incorporated into stock price is mitigated post-Directive 40 due to a restriction on selective disclosures and/or private communication. Moreover, we find that this regulatory impact varies for firms being followed by affiliated analysts versus non-affiliated analysts. JEL Classifications: G14; G15; G17; G18.

The Mirror of Malaysia Real Estate Investment Trust Stock Return in the Short-Run Dynamics

2021 ◽  
Vol 12 (3) ◽  
pp. 547-562
Author(s):  
William Choo Keng Soon Et.al
Keyword(s):  
Real Estate ◽  
Crude Oil ◽  
Capital Market ◽  
Stock Price ◽  
Trading Volume ◽  
Stock Return ◽  
Financial System ◽  
Empirical Finding ◽  
Short Run ◽  
The Impact

The formation of Islamic capital market under the subcomponent of Islamic financial system scratch a milestones development of Islamic finance in Malaysia. The Islamic capital market operates in mirror with convention capital market in expending, deepening and broadening Malaysia financial system. Malaysia is one of the REIT markets that value both the Islamic and conventional practices, such flexibility makes the attract not only to the local investor but also Islamic investors and foreign investor. The major source that generates income for REIT is the rental of the commercial real estate invested and hold as portfolio by the REIT management company. Furthermore, Malaysia REIT is known to be defensive stocks which consist of cyclic income producing assets that has some potential of asset appreciation. On the other hand, it witnessed by the moderation of Malaysia government bond yields created a lower pressure on the REIT stock price and analyst’s report highlighted the uncertainties on global crude oil prices and inflation is main concerned to REIT investors. In addition, the revision of 2019 tax system in Malaysia furnished a long run affected the dividend payout and volatility of REIT stock price. Therefore, this impact on the REIT stock liquidity and trading volume experiencing anil liquid trading. Therefore, the impact of external forces towards the mirror of two type of Malaysia REITs is significant to the investors, policy makers and government to outline the short-run relationship and facilitate future growth. The Vector auto regression model, granger causality and variance decomposition employed in this study to analyze the mirror of two types Malaysia REIT stock return. The empirical finding shows that the variability of dividend yield is vital explanatory variables to explain the both type of REIT stock return in Malaysia followed by interest rate for Islamic REIT stock return. The mirror of conventional REIT further implicated that trading volume and global crude oil price are useful to forecasting the changes in the stock return. Nutshell, this study provides a discussion of Malaysia REIT stock return behavior and it should be given necessary attention by researchers in ensuring the newly develop Islamic REIT are competitive and stability as the conventional REIT.

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