Managerial ability and stock price synchronicity

Junhui Fu, Xingwei Chen, Yufang Liu and Rongda Chen

Research in International Business and Finance, 2022, vol. 60, issue C

Abstract: This study investigates the impact of managerial ability on stock price synchronicity. Using a large sample of Chinese firms, we find that there is a negative relationship between managerial ability and stock price synchronicity. This finding holds after a series of robustness checks including potential endogeneity issues, different measures of managerial ability and stock price synchronicity, subsample analysis, and the winsorization of several variables. Further analyses show that the negative relationship is more pronounced for private enterprises and higher institutional shareholding firms. Finally, we find that managerial ability affects the stock price synchronicity through the opacity of financial reports.

Keywords: Managerial ability; Stock price synchronicity; State ownership; Institutional shareholding; Opacity of financial reports (search for similar items in EconPapers)
JEL-codes: G10 G30 M10 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:60:y:2022:i:c:s0275531921002270

DOI: 10.1016/j.ribaf.2021.101606

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