Stock price synchronicity and price informativeness: Evidence from a regulatory change in the U.S. banking industry

Whether return synchronicity is associated with higher or lower stock price informativeness still an ongoing debate in the academic literature. This paper contributes to this by exploiting exogenous shock, provided a regulatory change introduced Federal Reserve 2015, and examining its impact on using sample of U.S. listed bank holding companies (BHCs) operating during period 2014: Q3 – 2016: Q2. Applying regression discontinuity design, we find that treated BHCs decreases after change. finding suggests represents informativeness.