The spillover effect of IPO technology risk information on stock price synchronization: Evidence from China

Haiyan Xue, Jin Shi, Xindong Zhang and Shusheng Ding

Finance Research Letters, 2025, vol. 74, issue C

Abstract: Using a sample of Chinese companies listed on the Science and Technology Innovation Board from 2019 to 2023, we examine the spillover effect of IPO technology risk information on the stock price synchronization of their industry peers. The findings indicate that both the quantity and quality of IPOs' technical risk disclosures reduce peer stock price synchronization. Mechanistic analysis shows that IPO technical risk information disclosure leads to a significant increase in voluntary information disclosures by industry peers. Furthermore, this spillover effect is more pronounced in industries with poor information environments or intense competitive pressures, and is more pronounced within non-state-owned enterprises.

Keywords: Spillover effect; Stock price synchronization; Technical risk information disclosure; IPO prospectus (search for similar items in EconPapers)
JEL-codes: M41 O31 O32 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325000686
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:74:y:2025:i:c:s1544612325000686

DOI: 10.1016/j.frl.2025.106803

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 ().