Administrative division adjustments and stock price comovement:Evidence from the city–county mergers in China  

作　　者：Chun Yuan Chunxiao Geng Zhe Li Yu Sheng Jie Lv 

机构地区：[1]School of Accountancy,Central University of Finance and Economics,China

出　　处：《China Journal of Accounting Research》2022年第2期50-67,共18页中国会计学刊（英文版）

基　　金：the financial support from the National Natural Science Foundation of China(No.71872199);the Beijing Social Science Foundation(No.20JJB015);the financial support from the Youth Program of National Natural Science Foundation of China(No.71902210);the Youth program of Ministry of Education Humanities and Social Science Research(No.19YJC630092)

摘　　要：Under the background of Chinese market segmentation,whether governmentled administrative division adjustments can promote regional economic integration is a practical issue.Taking interregional firms’stock price comovement as a micro measurement of regional integration,this paper investigates the regional integration effect of administrative division adjustments,i.e.,city–county mergers.We find that stock price comovement between county-level and municipal district-level firms in the merged counties and municipal districts significantly improve after city–county mergers,particularly in regions with a higher degree of market segmentation and lower degree of marketization.We further find that the increase in stock price comovement caused by city–county mergers emerges from the increase in comovement of real activities between firms in the merged counties and municipal districts.Taken together,our results suggest that government-led administrative division adjustments effectively promote regional integration.

关 键 词：Administrative division adjustment Stock price comovement City-county merger Regional integration 

分 类 号：F832.51[经济管理—金融学] D630[政治法律—政治学]