IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v77y2025ipbs0275531925002016.html
   My bibliography  Save this article

Does common ownership affect stock price synchronicity?

Author

Listed:
  • Liu, Wenhua
  • Sun, Bohong
  • Zhao, Lili
  • Zhu, Pingheng

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.

Suggested Citation

  • Liu, Wenhua & Sun, Bohong & Zhao, Lili & Zhu, Pingheng, 2025. "Does common ownership affect stock price synchronicity?," Research in International Business and Finance, Elsevier, vol. 77(PB).
    • Handle: RePEc:eee:riibaf:v:77:y:2025:i:pb:s0275531925002016
    DOI: 10.1016/j.ribaf.2025.102945
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531925002016
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2025.102945?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Common ownership; Stock price synchronicity; Corporate disclosures; Irrational factors; Institutional investor;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:77:y:2025:i:pb:s0275531925002016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.