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

Author

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  • Huang, Zhengzheng
  • Hao, Yanwei

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.

Suggested Citation

  • Huang, Zhengzheng & Hao, Yanwei, 2025. "Changes in stock price synchronicity driven by digital transformation: The role of media attention and accounting conservatism," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005471
    DOI: 10.1016/j.frl.2025.107284
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    More about this item

    Keywords

    Digital transformation; Stock price synchronicity; Media attention; Accounting conservatism;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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