Empirical Study: Insider Trading In The Stock Market Of China

Insider trading in the stock market can not only violates the open, fair, just and honest principles of the stock market which market participants must be followed, but also disrupts the normal operation of the stock market order. However, because there are market conditions, social integrity, insider trading practices and other various external causes, and it is difficult to identify the existence of internal factors, making insider trading illegal acts for the regulation has been the world stock markets in China and the relevant regulatory authorities of the problem. In order to solve this problem, scholars both at home and abroad are in-depth study of insider trading. On the basis of the study on insider trading which are written by the scholars both at home and abroad, this paper selected insider trading case for the study sample which the investigation results have been published in 2010, using event study as the main research method, and selected the CAR, the relative trading volume and differences in turnover for the study index, analyzing the impact of insider trading on the stock price, trading volume and the turnover rate. If the event before the announcement of the cumulative average abnormal returns of the whole event window period abnormal returns than significant, the average cumulative abnormal returns before the announcement information in the event of a significant test statistic is not zero, then the event information with significant resistance and has been leaked in advance, indicating the existence of insider trading. By analyzing each sample cumulative abnormal stock returns, each sample stock insider trading in different forms and the cumulative abnormal returns trend is divided into three cases. By analyzing each sample relative to the stock trading volume, insider trading makes the stock change in abnormal trading volume, and make one day in the window period to reach maximum observed in all samples of the stock trading window period relative amount found due to insider information insider trading in the stock market. If the time is different, the stock trading volume reaches its maximum in the window period of time is also different.