Research On Supervision Policy Of T Listed Companies

As the most basic part of security market, the quality of listed companies directly influent the overall situation of this market, and playing an important role in the fluctuation of investor's confidence as well. In order to disclose the risk of investment to protect the investor's benefit, and give some pressure to those listed companies whose performance is not so satisfactory, a series of supervision policies are published to give special treatment to those companies who have been or are going to face the financial and operational risks, this special group is called as T listed companies. The advent and supervision process of T listed companies reflects the wider and wider horizons of the supervision of security market in China. Although the relevant policies are not so completed, but still have formed a preliminary system and take an important role in the development of China's stock market.This paper focuses on the supervision system of T listed companies correspondingly. First of all, the change route and feature of those supervision policies are described, then according to the overall analysis on the history and present situation of the studying in China and abroad and the background of theories, the description of the current condition of T listed companies has been taken from the vertical and horizontal perspective. Secondly, in terms of market reaction to those supervision reports, the relevant policies have been analyzed. In this part, the basic research model is built up based on the methods of Event Study and Statistic Regression, the T listed companies of Shanghai stock market in 2003 and 2004 are chosen as the samples of this research. The comprehensive quantitative analysis is relevant to the four kinds of reports, which including Special Treatment reports, Cancel Special Treatment reports, Market-suspension reports and Market-renew reports. Those questions such as the effectiveness of supervision of T listed companies, the market effects of investors, the rationality of investor's behavior and the reaction pattern of stock market, have all been probed. Finally, the main conclusion of this paper, the breakthrough and limitation of this research are summarized.