The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market

In the capital market, the stock prices synchronicity is an important indicator to measure the "simultaneously rise and fall" of individual stocks to the average market trend. Since the accounting reform in 2007, China's accounting standards have been gradually integrating with IFRS,...

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Main Author: Shen, Er
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2023
Online Access:https://eprints.nottingham.ac.uk/71107/
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author Shen, Er
author_facet Shen, Er
author_sort Shen, Er
building Nottingham Research Data Repository
collection Online Access
description In the capital market, the stock prices synchronicity is an important indicator to measure the "simultaneously rise and fall" of individual stocks to the average market trend. Since the accounting reform in 2007, China's accounting standards have been gradually integrating with IFRS, thereby improving the quality of financial statements. However, the deficiencies in the internal control construction and external supervision of listed companies have led to numerous noise transactions and have slowed down the pace of transformation to a mature market. Especially for ChiNext, a stock market with relatively high investment risk, constantly improving accounting systems and high noise environment phenomena coexist. Considering this background, the study attempts to explore the internal connection among accounting information quality, internal control and stock price synchronicity in ChiNext from 2016 to 2020. Referring to the research conclusion, from the perspective of stock price synchronicity, the negative relationship between accounting information quality is proved. For internal control, it has positive relationship with the stock price synchronicity. This result is consistent with the "inverted U-shaped" non-monotonic linear model proposed by scholars. In addition, the study finds that the accounting information quality plays a mediating role between the internal control quality and the stock prices synchronicity. Therefore, to promote the transformation speed of China's ChiNext market from an emerging market to a mature market, it is vital to continue to adhere to accounting reforms, standardize the stock market, and strengthen internal control supervision.
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spelling nottingham-711072023-02-21T08:00:04Z https://eprints.nottingham.ac.uk/71107/ The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market Shen, Er In the capital market, the stock prices synchronicity is an important indicator to measure the "simultaneously rise and fall" of individual stocks to the average market trend. Since the accounting reform in 2007, China's accounting standards have been gradually integrating with IFRS, thereby improving the quality of financial statements. However, the deficiencies in the internal control construction and external supervision of listed companies have led to numerous noise transactions and have slowed down the pace of transformation to a mature market. Especially for ChiNext, a stock market with relatively high investment risk, constantly improving accounting systems and high noise environment phenomena coexist. Considering this background, the study attempts to explore the internal connection among accounting information quality, internal control and stock price synchronicity in ChiNext from 2016 to 2020. Referring to the research conclusion, from the perspective of stock price synchronicity, the negative relationship between accounting information quality is proved. For internal control, it has positive relationship with the stock price synchronicity. This result is consistent with the "inverted U-shaped" non-monotonic linear model proposed by scholars. In addition, the study finds that the accounting information quality plays a mediating role between the internal control quality and the stock prices synchronicity. Therefore, to promote the transformation speed of China's ChiNext market from an emerging market to a mature market, it is vital to continue to adhere to accounting reforms, standardize the stock market, and strengthen internal control supervision. 2023-02-18 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/71107/1/MSc%20F%26I%20Dissertation%20-%20Shen%20Er%20-%2020374328.pdf Shen, Er (2023) The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market. [Dissertation (University of Nottingham only)]
spellingShingle Shen, Er
The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market
title The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market
title_full The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market
title_fullStr The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market
title_full_unstemmed The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market
title_short The influence of accounting information quality and internal control on stock price synchronicity: evidence from China A-share ChiNext market
title_sort influence of accounting information quality and internal control on stock price synchronicity: evidence from china a-share chinext market
url https://eprints.nottingham.ac.uk/71107/