Author(s)

Tingting Sun ¹

Affiliation(s)

¹ School of Tingting Sun, Northeast Forestry University, Harbin, 150000, China

Corresponding Author

Tingting Sun

ABSTRACT

The stock bar has emerged as a platform for small and medium investors to voice their opinions, which can play a supervisory role of social network. Using the data of listed companies from 2008 to 2021, this paper studies the impact of public opinion on stock price synchronism. We find that stock bar public opinion has an inhibitory effect on stock price synchronicity, and this conclusion is still valid after a series of robustness tests. This inhibitory effect is more obvious in companies with integrated ownership, smaller investment weight of institutional investors and fewer analyst trail numbers. The mechanism analysis shows that the public opinion of stock bar will weaken the impact of abnormal trading. Our research supports the idea that stock bar public opinion can enhance corporate governance, ultimately leading to a reduction in stock price synchronicity. These outcomes are of significant importance in terms of increasing investor awareness of stock bar public opinion and expanding the range of influences on stock price synchronism. 

KEYWORDS

Stock bar public opinion, Stock price synchronicity, Corporate governance

CITE THIS PAPER

Tingting Sun, Stock bar public opinion and stock price synchronicity. Financial Engineering and Risk Management (2023) Vol. 6: 117-135. DOI: http://dx.doi.org/10.23977/ferm.2023.060415.

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