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CEO media exposure, political connection and Chinese firms' stock price synchronicity

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  • Li, Xiaoqing
  • Qiao, Penghua
  • Zhao, Lin

Abstract

This paper investigates the impact of CEO media exposure and CEO political connection on stock price synchronicity using weekly data of Chinese firms from 2007 to 2016. We also examine the influence of three institutional factors – the firm's ownership structure, its financial and legal environments – on the interactions among them. Our results suggest that CEO media exposure can enhance firm-specific information into stock prices, reducing stock price synchronicity, while the CEO political connection acts as a counteracting force. The institutional factors appear to have significant influence on the identified interaction among a CEO's media exposure, his political connections, and the company's stock price synchronicity.

Suggested Citation

  • Li, Xiaoqing & Qiao, Penghua & Zhao, Lin, 2019. "CEO media exposure, political connection and Chinese firms' stock price synchronicity," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 61-75.
    • Handle: RePEc:eee:reveco:v:63:y:2019:i:c:p:61-75
    DOI: 10.1016/j.iref.2018.08.006
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    3. Li, Qinyang & Liu, Xiangqiang & Chen, Jing & Wang, Huaixin, 2022. "Does stock market liberalization reduce stock price synchronicity? —Evidence from the Shanghai-Hong Kong Stock Connect," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 25-38.
    4. Jing‐Yue Liu & Yue‐Jun Zhang & Charles H. Cho, 2023. "Corporate environmental information disclosure and green innovation: The moderating effect of CEO visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3020-3042, November.
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    6. Can Huang & Yuqiang Cao & Meiting Lu & Yaowen Shan & Yizhou Zhang, 2023. "Messages in online stock forums and stock price synchronicity: Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3011-3041, September.
    7. Anna Gorska & Grzegorz Mazurek, 2021. "The effect of the CEO media coverage on corporate brand equity: evidence from Poland," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 499-523, June.
    8. Fenghua Wen & Yujie Yuan & Wei‐Xing Zhou, 2021. "Cross‐shareholding networks and stock price synchronicity: Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 914-948, January.
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    Keywords

    Chinese stock market; CEO media coverage; Political connection; Stock price synchronicity;
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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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