<p>This study investigates the relationship between corruption culture and stock price synchronicity using a dataset of Chinese firms listed during 2010–2021. Drawing from the new institutional theory and agency theory frameworks, this study explores how a corruption culture fosters information opacity and information asymmetry, subsequently leading to increased stock price synchronicity. The results of regression analyses find a significant positive association between local corruption culture and stock price synchronicity. Furthermore, we investigate the potential mechanisms underlying this relationship, shedding light on how corruption-induced information asymmetry and opacity influence stock price synchronicity. The findings reveal that the impact of corruption culture on stock price synchronicity depends on the strength of the institutional environment, with a robust institutional framework mitigating the adverse effects. Additionally, non-state-owned enterprises are more sensitive to corrupt environments because they rely on informal institutions. Moreover, external governance mechanisms play a vital role in counteracting the negative impact of corruption culture on stock price synchronicity. This study extends our understanding of how corruption culture influences financial markets and has policy implications that are applicable to emerging economies beyond the Chinese context.</p>