Linguistic specificity and stock price synchronicity  

作　　者：Wei Zhao Hanfang Yang Hua Zhou 

机构地区：[1]School of Business,Renmin University of China,Beijing,China [2]Center for Applied Statistics and School of Statistics,Renmin University of China,Beijing,China

出　　处：《China Journal of Accounting Research》2022年第1期26-50,共25页中国会计学刊（英文版）

基　　金：funded by grants from the Major Program of National Fund of Philosophy and Social Science of China(No.18ZDA073);National Natural Science Foundation of China(No.71790602)

摘　　要：Linguistic specificity effectively reduces barriers to information cognition,increasing the efficiency of information acquisition,integration and processing.Combining the psycholinguistics theory of the concreteness effect with assetpricing theory,we determine that linguistic specificity in the management discussion and analysis section of a firm’s annual reports is negatively associated with stock price synchronicity,particularly in firms with strong external information demand or insufficient information supply.Furthermore,only specificity of the review section leads to a reduction in stock price synchronicity.Mechanism tests show that specificity reduces information processing costs and enhances information credibility.Additionally,proprietary costs are an essential determinant of linguistic specificity adoption.Our findings suggest that linguistic specificity plays an essential role in improving market pricing efficiency.

关 键 词：Linguistic Specificity Market Pricing Efficiency Textual Analysis Machine Learning 

分 类 号：F832.51[经济管理—金融学] F275