Corporate Ownership Structure, Earnings Management and Stock Price Synchronicity — Evidence from China

• Main Authors: Hong-Yu Sun, 孫虹雨
• Other Authors: Yu-Shun Hung
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/21088455993620577041

碩士 === 輔仁大學 === 會計學系碩士班 === 104 === This study investigates the relationship among corporate ownership structure, earnings management and stock price synchronicity of Chinese listed companies. The research is divided into three parts. The first part examines the relationship between earnings management and transparency, and proves that earnings management effects stock price synchronicity through transparency. The second part investigates the impact of corporate ownership structure on stock price synchronicity. The third part analysts how the government improve the information and market efficiency through optimizing corporate ownership structure. This study uses A-share listed companies of Shenzhen Stock Exchange (SZSE) from 2005 to 2014 as research samples. The main findings are as follows. First, there is a negative and significant association between earnings management and transparency, but a positive association between transparency and stock price synchronicity. The empirical results also show that earnings management effects stock price synchronicity through transparency. Second, the impact of corporate ownership structure on the stock price synchronicity is different. Synchronicity is negative with ownership concentration, management shareholdings and state shareholding rate of state-owned enterprise (SOE). But the synchronicity is higher when the ultimate controlling shareholder is government related. Third, the impact of corporate ownership structure on the relationship between earnings management and synchronicity, which reflect the market noise, is different. Results show that market noise is positive with ownership concentration and state shareholding rate of SOE. This study not only provides empirical basis for listed companies to adjust their ownership structure based on their demands, but also provides some suggestions for government that how to improve the information and market efficiency through optimizing corporate ownership structure.