Abstract
Using text analysis, in this study, we identified and quantified the textual contents of the enterprise innovation behavior descriptions in analyst reports, and we formed an information content index. Based on the views of information efficiency and noise trading theory, we analyzed the impact of the corporate innovation behavior descriptions in analyst reports on the stock price synchronicity, using the degree of information asymmetry as the moderating factor, and the heterogeneous beliefs of investors and noise trading as the mediating factors. Our empirical research results are as follows: (1) the corporate innovation behavior descriptions in analyst reports can inhibit the stock price synchronicity phenomenon, which is constrained by the degree of information asymmetry; (2) the analyst descriptions of corporate innovation behavior strengthen the heterogeneous beliefs of investors, thereby inhibiting the stock price synchronization; (3) noise trading has no mediating effect between the analyst descriptions of corporate innovation behavior and stock price synchronicity. This study provides favorable evidence for the information intermediary role of analysts, and it enriches the theoretical research on stock price synchronicity. It also provides a new research perspective for the application of text analysis in the fields of finance and accounting, and it enriches the research dimensions of the textual characteristics of analyst reports.
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