IDEAS home Printed from https://ideas.repec.org/a/spr/fininn/v11y2025i1d10.1186_s40854-025-00764-1.html
   My bibliography  Save this article

Geographical distance and stock price synchronization: evidence from China

Author

Listed:
  • Xiong Xiong

    (Tianjin University, Nankai District)

  • Chenghao Ruan

    (Tianjin University, Nankai District)

  • Yongqiang Meng

    (Tianjin University, Nankai District)

Abstract

The effects of geographic factors on information dissemination among investors have been extensively studied; however, the relationship between the geographical distance and stock price synchronization remains unclear. Grounded in information asymmetry theory, this study investigates the impact of geographical distance on stock price synchronization in the Chinese stock market. Using the data from the Shanghai and Shenzhen Stock Exchanges, we find that a greater geographical distance between mutual funds and firms considerably increases stock price synchronization, highlighting a strong positive relationship. Additional analysis show that firms in the regions with better external and internal governance, benefit more from reduced information asymmetry, than those in less regulated or transparent regions. These results have key implications for institutional investors and policymakers aiming to enhance information dissemination and market integration in China.

Suggested Citation

  • Xiong Xiong & Chenghao Ruan & Yongqiang Meng, 2025. "Geographical distance and stock price synchronization: evidence from China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-27, December.
    • Handle: RePEc:spr:fininn:v:11:y:2025:i:1:d:10.1186_s40854-025-00764-1
    DOI: 10.1186/s40854-025-00764-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40854-025-00764-1
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40854-025-00764-1?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
    ---><---

    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:spr:fininn:v:11:y:2025:i:1:d:10.1186_s40854-025-00764-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.