Can core competence help reduce stock price synchronicity? - Empirical evidence based on text analysis.

ABSTRACT: This paper constructs the measurement index of core competence by text analysis method and empirically tests the impact of core competence on stock price synchronicity. We find that the stronger the core competence, the lower the stock price synchronicity, and mechanism test shows that core competence reduces the stock price synchronicity by enhancing the transparency of corporate information, which is still valid under a series of robustness tests. Further research shows that:(1) when the corporate governance environment is poor (higher level of internal earnings management, lower quality of accounting information, greater separation of ownership and control, lower shareholding ratio of external institutional investors, weaker product market competition, less media attention), the core co

SUBMITTER: Sun C 

PROVIDER: S-EPMC8577773 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature