 Does common ownership affect stock price synchronicity?Wenhua Liu, Bohong Sun, Lili Zhao and Pingheng Zhu Research in International Business and Finance, 2025, vol. 77, issue PB Abstract: The study explores the impact of common ownership on stock price synchronicity. As an increasingly widespread phenomenon in the capital market, we have demonstrated that common ownership can enhance corporate stock price synchronicity. The mechanistic analysis confirms that common ownership promotes stock price synchronization by increasing information disclosure. In addition, we provide evidence that this effect of common ownership is significant only when common institutional investors are predominantly long-term investors and have a greater information advantage. Last, the positive relationship between common ownership and stock price synchronicity is more pronounced when the corporate has more noise trading and disclosure costs. Overall, our study supplies fresh insight into the economic consequences of co-ownership in stock markets, providing a theoretical foundation for regulators to refine guidance for institutional investors and optimize the noise-driven trading environment in emerging markets. Keywords: Common ownership; Stock price synchronicity; Corporate disclosures; Irrational factors; Institutional investor (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:77:y:2025:i:pb:s0275531925002016 DOI: 10.1016/j.ribaf.2025.102945 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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