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The spillover effect of IPO technology risk information on stock price synchronization: Evidence from China

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  • Xue, Haiyan
  • Shi, Jin
  • Zhang, Xindong
  • Ding, Shusheng

Abstract

Using a sample of Chinese companies listed on the Science and Technology Innovation Board from 2019 to 2023, we examine the spillover effect of IPO technology risk information on the stock price synchronization of their industry peers. The findings indicate that both the quantity and quality of IPOs' technical risk disclosures reduce peer stock price synchronization. Mechanistic analysis shows that IPO technical risk information disclosure leads to a significant increase in voluntary information disclosures by industry peers. Furthermore, this spillover effect is more pronounced in industries with poor information environments or intense competitive pressures, and is more pronounced within non-state-owned enterprises.

Suggested Citation

  • Xue, Haiyan & Shi, Jin & Zhang, Xindong & Ding, Shusheng, 2025. "The spillover effect of IPO technology risk information on stock price synchronization: Evidence from China," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612325000686
    DOI: 10.1016/j.frl.2025.106803
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    Keywords

    Spillover effect; Stock price synchronization; Technical risk information disclosure; IPO prospectus;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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