The impact of mainstream financial press attention on stock pricing efficiency in the China stock market

Abstract

As the pivotal figure of information transmission in the capital market, the mainstream financial press has a significant impact on the operation of the stock market. Based on the mainstream financial press, this study obtains the news reports of 945 China A-share listed companies in 2010–2019 and analyzes the relationship between the attention of the mainstream financial press and the efficiency of stock pricing. Further, we explore the mediating effect of corporate governance in this correlation. The empirical results show that the more reports on listed companies from the mainstream financial press the lower the delay level of the stock price of listed companies. At the same time, the characteristics information of the stock price increases, the higher the stock pricing efficiency. The attitude of press reports of listed companies also has an impact on the efficiency of stock pricing. The improvement of pricing efficiency will be achieved through neutral reporting. Mainstream financial press reports indirectly improve the efficiency of stock pricing by reducing the agency costs of the two types, and corporate governance plays a significant intermediary role in it. Finally, compared with market-oriented media, the effect of policy-oriented mainstream financial press on pricing efficiency is more significant.