Changes in stock price synchronicity driven by digital transformation: The role of media attention and accounting conservatism

Zhengzheng Huang and Yanwei Hao

Finance Research Letters, 2025, vol. 79, issue C

Abstract: This study analyzes a sample of A-share listed companies in China from 2010 to 2022. The results indicate that digital transformation effectively reduces the excessive level of stock price synchronicity, and this conclusion has been robustly tested through various sensitivity checks. The mediation analysis further confirms that digital transformation mitigates stock price synchronicity by increasing media attention. Moreover, as corporate accounting conservatism improves, the inhibitory effect of digital transformation is significantly strengthened. Finally, heterogeneity analysis reveals that the impact of digital transformation is more pronounced in large-scale firms and those in highly competitive industries.

Keywords: Digital transformation; Stock price synchronicity; Media attention; Accounting conservatism (search for similar items in EconPapers)
JEL-codes: G34 L15 L22 M14 O33 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325005471
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005471

DOI: 10.1016/j.frl.2025.107284

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().