Capital Market Reaction to Information Disclosure of Enterprise Annual Report Core Competitiveness--Based on text feature analysis perspective

This study examines China A-share listed companies from 2012 to 2022 to assess how core competitiveness information disclosure in annual reports affects capital market reactions. Using stock price synchronicity as a measure of market response, the results show that higher readability of core competitiveness disclosures is associated with lower stock price synchronicity, while text similarity has no significant effect. These findings remain robust after addressing endogeneity and conducting stability tests. By focusing on the "core competitiveness analysis" section and constructing text characteristic indices, this study provides a novel contribution to the literature on annual report disclosures and offers practical insights for firms and regulators to enhance information quality and supervision.