An Empirical Research On Chinese Stock Market

With the samples of stocks which has experienced insider trading in Chinese security market, this article analyzes the current characteristics of the insider trading in Chinese security market. It makes empirical description of the insider trading in the follows: the effect of insider trading on the stock price, the abnormal return or disgorgement of insider traders, the impact of insider trading on the information asymmetry in trading. Trying to identify the relationship and mechanism between insider trading and information asymmetry, this article designs an economic experiment to simulate the reality and it turnes out to be not only a sound simulator but also a referencable method. Finally, based on our analysis and conclusions, we develop the suggestions when faced with insider trading.The main creative work of this paper lies on the following two aspects.One lies on sampling: We not only use the eleven cases that have been detected by Security Administration, but enlarge the sample space with some new standard and technology.The other lies on the tentative explanation on the mechanism between Insider Trading and information asymmetry: not only the conclusion covers some blank in the mechanism research, but the experimental research itself provides us a valuable access to the inside world of Insider Trading.