Title: Does corporate governance really influence stock price synchronicity?

Authors: Abhisek Saha Roy; Som Sankar Sen

Addresses: Department of Commerce, The University of Burdwan, Golapbag, Burdwan, 713104, West Bengal, India ' Department of Commerce, The University of Burdwan, Golapbag, Burdwan, 713104, West Bengal, India

Abstract: It has been argued in many studies that as the informational asymmetry in the market decreases, stock return synchronicity also decreases, the reason being that the market has less market-wide information and more firm-specific information. This paper mostly tries to explain the influence of corporate governance on stock price synchronicity where corporate governance is considered a proxy of governance transparency. The result documents the fact that the presence of international directors, CEO duality, percentage of shareholding pattern and board member's attendance has a very significant impact on synchronicity. However, selection of random effect model suggests that there is unobserved heterogeneity in the model which is constant over time and not correlated with the independent variable.

Keywords: corporate governance; board composition; board diligence; stock price synchronicity.

DOI: 10.1504/IJBIR.2023.134888

International Journal of Business Innovation and Research, 2023 Vol.32 No.3, pp.323 - 342

Received: 23 Feb 2021
Accepted: 13 May 2021
Published online: 16 Nov 2023 *

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