The Research On The Impact Of Shares' Negotiability On Stock Price About China's Listed Companies

Since the stock market has founded over ten years, the problem of ownership structure which lacks in circulation is always restricting the healthy development of the market. Recently, it is the implementing moment of the reform of dual-class equity structure, the share ratio in circulation is rapidly enhanced. In this special period, the paper mainly studies the effect of the share ratio in circulation on stock price, to provide reference for the listed companies making their financial policies, for the investors making their reasonable decisions, for the short-term investors to make sensible choice from the aspect of negotiability.The paper combines the theory of liquidity with the special ownership structure of China, employing the share ratio in circulation and turnover rate as the indexes of negotiability, taking the size of company, per share earnings and net asset value per share as the control variables. Based on Feltham-Ohlson Model, the paper creates a model of multi linear regression within the negotiability indexes. All these 5 indexes pass F tests and t tests, which prove that the model is effective.The paper employs the total listed companies from 2001 to 2004 as samples and also takes 129 listed companies that have involved in the share merger reform in 2005. According to the turnover rate, the paper puts the total samples to two groups. Through the empirical study of each group, the paper gets the results: the share ratio in circulation effects on the stock price negatively;from the angle of the whole, the turnover rate effects on the stock price positively, but under the condition that the exchanging is extremely un-active, the turnover rate is significant negative correlated with the stock price;before and after the reform, the ratio still effects on the price negatively, and as a whole the turnover rate effects on the price positively, and the sensitivity that the price to ratio is improved;the different listed companies, which the level of exchanging activity is different, the sensitivity that the price to the ratio is different, which means that the more active the trade is, the higher the sensitivity the price to the ratio, vice versa;the size of the company, per share earnings and net asset value per share are important facts that deicide the stock price, the size effects on the price negatively, per share earnings and net asset value per share effects on the price positively.