Empirical Test Of Shell Acquisition And Shell Reactivation Influence On Abnormal Stock Return

The abnormal return happened in shell acquisition and shell reactivation has been the focus of the practice and the theory in china stock market. The paper is adopting the case analysis method to analyze, test and refer to the long term qualitative index through calculating individual company's CAR and its influence on the stock value.First, we introduce what is the ST stock, the background and risk of ST stock. ST means the special treatment for stock dealing. Most of the ST stock is deficit shares with high risk to be delisting.Second, the Chinese stock approval system is the key reason why the secondary market overvalued the shell company which is deficit shares. What on earth is administrative examination and approval? Why we should do it? Can it be entirely cancelled? How to carry it on? These questions are what we should make sure when we reform the system of administrative examination and approval on Chinese stock approval system.Third, the paper respectively investigates the shell A&R cases taking place at the listed companies in China's financial market in order to deduce the method. We may find some invest opportunity in the special treatment shares base on what we have drawn in our paper.