Does investors’ site visits improve the capital market pricing efficiency?
This article empirically tested the impact of investors' site visits on capital market pricing efficiency. Leveraging the data from 2009 to 2022 of Shenzhen Stock Exchange's listed companies, we found that: (1) Investors' site visits could reduce stock price synchronicity, indicating...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-09-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023063089 |
| _version_ | 1797669890266497024 |
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| author | Nian Li Runsen Yuan Muhammad Asif Khan Xiaofeng Yang Nosherwan Khaliq Xi Zhang |
| author_facet | Nian Li Runsen Yuan Muhammad Asif Khan Xiaofeng Yang Nosherwan Khaliq Xi Zhang |
| author_sort | Nian Li |
| collection | DOAJ |
| description | This article empirically tested the impact of investors' site visits on capital market pricing efficiency. Leveraging the data from 2009 to 2022 of Shenzhen Stock Exchange's listed companies, we found that: (1) Investors' site visits could reduce stock price synchronicity, indicating improved pricing efficiency of the capital market. (2) The mechanisms tests showed that: investors could obtain private incremental information through site visits. (3) The conclusions remained intact after robust tests, including alternative key variables, samples and specifications, and various endogenous treatments. (4) Investors added arbitrage trading behavior after the site visit without significantly impounding industry-level information into the stock price. This paper enriched the knowledge of how site visits of different investment entities affect capital market pricing efficiency. |
| first_indexed | 2024-03-11T20:51:26Z |
| format | Article |
| id | doaj.art-38b2f5564bd24861aad1c0c9e406cce6 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-11T20:51:26Z |
| publishDate | 2023-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-38b2f5564bd24861aad1c0c9e406cce62023-10-01T05:58:39ZengElsevierHeliyon2405-84402023-09-0199e19100Does investors’ site visits improve the capital market pricing efficiency?Nian Li0Runsen Yuan1Muhammad Asif Khan2Xiaofeng Yang3Nosherwan Khaliq4Xi Zhang5School of Economics and Management, Yanshan University, 066004, Qinhuangdao, Hebei Province, ChinaSchool of Economics and Management, Yanshan University, 066004, Qinhuangdao, Hebei Province, China; Corresponding author.Department of Commerce, University of Kotli AJK, PakistanSchool of Economics and Management, Yanshan University, 066004, Qinhuangdao, Hebei Province, China; Corresponding author.School of Economics and Management, Yanshan University, 066004, Qinhuangdao, Hebei Province, China; Corresponding author.School of Accounting, Dongbei University of Finance and Economics, Dalian, ChinaThis article empirically tested the impact of investors' site visits on capital market pricing efficiency. Leveraging the data from 2009 to 2022 of Shenzhen Stock Exchange's listed companies, we found that: (1) Investors' site visits could reduce stock price synchronicity, indicating improved pricing efficiency of the capital market. (2) The mechanisms tests showed that: investors could obtain private incremental information through site visits. (3) The conclusions remained intact after robust tests, including alternative key variables, samples and specifications, and various endogenous treatments. (4) Investors added arbitrage trading behavior after the site visit without significantly impounding industry-level information into the stock price. This paper enriched the knowledge of how site visits of different investment entities affect capital market pricing efficiency.http://www.sciencedirect.com/science/article/pii/S2405844023063089Site visitsStock price synchronicityCapital market pricing efficiencyIncremental information |
| spellingShingle | Nian Li Runsen Yuan Muhammad Asif Khan Xiaofeng Yang Nosherwan Khaliq Xi Zhang Does investors’ site visits improve the capital market pricing efficiency? Heliyon Site visits Stock price synchronicity Capital market pricing efficiency Incremental information |
| title | Does investors’ site visits improve the capital market pricing efficiency? |
| title_full | Does investors’ site visits improve the capital market pricing efficiency? |
| title_fullStr | Does investors’ site visits improve the capital market pricing efficiency? |
| title_full_unstemmed | Does investors’ site visits improve the capital market pricing efficiency? |
| title_short | Does investors’ site visits improve the capital market pricing efficiency? |
| title_sort | does investors site visits improve the capital market pricing efficiency |
| topic | Site visits Stock price synchronicity Capital market pricing efficiency Incremental information |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023063089 |
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