The impact of insurance company participation on the capital market’s sustainable development—empirical evidence based on investor sentiment and stock price synchronicity

Given the representativeness and availability of data, this paper selects personal posts from Oriental Wealth Internet Cafe Sina Forum to analyze mechanism insurance company participation, investor sentiment, stock price synchronicity in China. Using a panel data listed companies 2007 2018, evidence shows that sentiment market forum will increase prices short term, while an company’s shareholding effectively reduces impact on share which plays mediator effect; higher proportion shareholdings, more evident effect. By conducting counterfactual research, study found participation can reduce by 0.10435 group with high than low sentiment. For each group, greater reduction prices. The results be used national regulatory authorities formulate policies field e-finance order synchronization, stabilize financial markets, minimize systemic risks.