Empirical Study On The Impact Of Internet Plus Medical Care Policy On Stock Price

Since 2014,with the acceleration of the medical reform process,the emerging industry of Internet Plus Medical Care model has received widespread attention.Along with its rapid expanding and related frequent investment and financing activities,a great number of Internet Plus Medical Care concept stocks have emerged on the securities market.At the same time,the intensive introduction of relevant policy information has added protection and motivation to the development of this new industry.As the strategy moves from its introduction to implementation and to its further implementation,it is particularly important to study the impact of policies on the stock prices during this period.While the most researches on the Internet Plus Medical Care mainly focus on qualitative research,this paper chooses to focus on the capital market and use empirical research to explore the impact of industry policy information on the stock prices of related companies.On the one hand,this paper enriches the gaps in the research on the policy effects of specific industries,on the other hand,it can help governments and investors make more effective and rational decisions.First of all,this paper uses literature research method to explain related theories of stock price volatility and the mechanism by which policies affect stock returns,laying a theoretical support for the article.Then the paper combed the development status and policy history of China’s Internet Plus Medical Care industry,and made a descriptive analysis of the relevant securities market.After that,using the event study method to make an empirical analysis.After preparation by screening,47 Shanghai and Shenzhen listed companies closely related to Internet Plus Medical Care were selected as the research objects,and five specific policy events related to Internet Plus Medical Care from 2015 to 2019 were selected.The policy information release day is defined as the event day,while 10 days before and after the event day are defined as the event window period.Then the daily closing price is logarithmically processed to obtain the actual rate of return,and the market model in the risk-adjusted rate of return model is used to predict the normal rate of return in the event window,in order to calculate the average excess return rate(AAR)and cumulative average return rate(CAR)of each sample.Furthermore,proposing the null hypothesis that CAR is equal to zero,and on the basis of the results of the T test to estimate whether there is an industry policy effect.Also,the different effects of different policies on stock prices under different conditions are analyzed in depth.Based on the study,it is found that the release of the Internet Plus Medical Care policy has an impact on the stock prices of relevant listed companies,that is,the industry policy effect,both positive and negative,exists in the short term,while the positive effect is slightly better.But not every policy will have an impact on stock prices,and the degree of impact will vary greatly.Among the five events selected,two events have a significant promotion effect on the stock price,two events have a certain negative impact on the stock price,and the other event has basically no effect on the stock price.The study also found that under different market conditions,the company’s performance is not exactly the same,and the effects of macro environment,industry environment and market irrational factors may amplify or weaken policy effects.For example,in the bull market,the positive effects of policies will be further amplified.On the contrary,the positive effects may be offset by the impact of a bear market.According to the results,the author puts forward reference recommendations from the perspectives of the government,investors and listed companies.From the perspective of the government,on the one hand,the government has the responsibility to guide and promote the development of the industry,and on the other hand,it has the responsibility to maintain market stability.Especially in the germinating stage or the period of hitting a bottleneck of a industry,the government usually adopts some policies to maintain and stimulate the development of the industry.Generally,the government also hopes that the policy could have a positive effect on the stock market.This requires that when formulating relevant policies,the government should improve the scientificity and rationality of policies,fully evaluate the short-term and long-term impact of policy introduction on industry development and the stock market,and formulate policies that are really beneficial to the industry and the market.At the same time try to avoid policies that are uncertain about the market.For investors,they should rationally judge the impact of various external factors,including policies,on the value of the underlying assets,clarify their investment goals and investment strategies,learn to control their irrational emotions,and continuously enrich their own investment knowledge.For listed companies,they should internally control risks and continuously improve the company’s profitability and development quality.At the same time,it’s good for them to seize the policy opportunities,rationally analyze the advantages and disadvantages of policies,and formulate sustainable development strategies of their own,but they could not rely too much on policies.