The Effect of Equity Concentration, Dual Listing and Audit Quality on Stock Price Synchronicity

Abstract

This paper studies the impact of stock concentration, dual listing and audit quality on the stock price synchronicity of listed companies in China during the period from 2009 to 2018. Using unbalanced panel data, this paper concludes that stock price synchronicity is a concave function of equity concentration, and that foreign ownership and high quality audits will effectively reduce the synchronicity of stock prices and make the market more effective. Keywords—equity concentration; dual listing; audit quality; stock price synchronicity