Studies from Shandong Technology and Business University Provide New Data on Sustainable Development (The impact of insurance company participation on the capital market’s sustainable development-empirical evidence based on investor sentiment …): Sustainability Research – Sustainable Development

Economics Daily Report

2022 DEC 13 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Current study results on sustainable development have been published. According to news reporting out of Yantai, People’s Republic of China, by NewsRx editors, research stated, “Given the representativeness and availability of data, this paper selects personal posts from the Oriental Wealth Internet Cafe and Sina Internet Cafe Forum to analyze the mechanism of insurance company participation, investor sentiment, and stock price synchronicity in China.”

Our news journalists obtained a quote from the research from Shandong Technology and Business University: “Using a panel of data of listed companies from 2007 to 2018, evidence shows that investor sentiment in the stock market forum will increase the synchronicity of stock prices in the short term, while an insurance company’s shareholding effectively reduces the impact of investor sentiment on share price synchronicity which plays a mediator effect; the higher the proportion of the insurance company’s shareholdings, the more evident the effect. By conducting counterfactual research, the study found that insurance company participation can reduce the synchronicity of stock price by 0.10435 in a group with high investor sentiment than a group with low investor sentiment. For each investor sentiment group, the higher the proportion of the insurance company’s shareholdings, the greater the reduction in the synchronicity of stock prices.”

According to the news reporters, the research concluded: “The results of this study can be used by national regulatory authorities to formulate policies in the field of e-finance in order to reduce stock price synchronization, stabilize financial markets, and minimize systemic financial risks.”

For more information on this research see: The impact of insurance company participation on the capital market’s sustainable development-empirical evidence based on investor sentiment and stock price synchronicity. Frontiers in Environmental Science, 2022,10. (Frontiers in Environmental Science - http://www.frontiersin.org/environmental_science). The publisher for Frontiers in Environmental Science is Frontiers Media S.A.

A free version of this journal article is available at https://doi.org/10.3389/fenvs.2022.1072094.

Our news editors report that additional information may be obtained by contacting Fangjing Hao, School of Computer Science and Technology, Shandong Technology and Business University, Yantai, People’s Republic of China. Additional authors for this research include Boyang Li, Juan Yang.