Abstract:
Improving pricing efficiency is an essential condition for enhancing capital market functionality. Clarifying whether the inquiry and review process during corporate bond issuance and listing provides incremental information for the stock market has significant theoretical and practical implications. Taking stock price synchronicity as the entry point and listed companies that publicly issued corporate bonds on the Shanghai and Shenzhen Stock Exchanges as the sample, this study finds that corporate bond issuance and listing review inquiries reduce stock price synchronicity. This effect is more pronounced in circumstances where the actual controller holds a higher proportion of control rights, analyst coverage is lower, audit quality is poorer, review feedback letters pay greater attention to material issues, and issuers provide higher-quality response letters. The underlying mechanisms operate through four channels: First, the inquiry process prompts companies to disclose incremental information, enhance information quality and readability, thereby reducing investors' costs of acquiring and processing information. Second, it creates substantial external monitoring pressure that constrains managerial opportunistic behaviors such as earnings manipulation. Third, it consolidates the accountability of intermediary institutions including lead underwriters and accounting firms, compelling them to urge issuers to improve information disclosure quality and enhance corporate governance standards. Fourth, it signals the existence of potential risks associated with the issuer to the market, guiding investors with limited attention to proactively avoid risks and adjust their asset allocation. This study extends the research perspective on the determinants of stock price synchronicity and provides empirical evidence for improving stock market pricing efficiency and better leveraging the pivotal function of capital markets.
下载:
