A Study On The Market Reactions Of The Bank Loans Announcements Of Listed Companies

Any corporate cannot develop futher without financing, and borrowing funds from banks is one of the most important financing ways. Corporate's loan behavior not only affects each aspect of operation managements, but also has a close relation to corporate's governance.And then, it will effect the corporate's value. As to the listed companies,these effects will be manifested as stock price fluctuation.Firstly, this thesis selects the announcements of bank loan contracts from the Shanghai &Shenzhen stock exchanges between 2000 and 2005.It focuses on the concern about bank loan contracts announcement,and uses the event-study methodology to study the market reaction of bank loan contracts empirically. We find the market has significant negative abnormal returns and abnormal trading volume.Futher,we find that there are significant negative abnormal returns five days before the announcement day, which shows that the loan information may be put it on the street before the formal disclosure.Besides,The event windows of the abnormal returns are consistent with the windows of the abnormal trading volume,and they all decline in the windows.This phenomenon shows that our securities market views this event as a bad event in a short time.Then,this paper also analyzes the factors which affect the reaction of abnormal return from the financial perspective and internal governace perspective .The adoption of multiple regression analysis helps us to find that the corporate profitability,the solvency and the largest shareholder's share ratio have a positive influence in the stock reaction related to the loan announcement.On the other hand, the share concentration from the second largest shareholder to the tenth largest shareholder have a negative influence in the stock reaction related to the loan announcement.Lastly,below are the policy suggestions provided by this paper according to the study conclusions.First, standard the procedure of trading information disclosure to enhance the market efficiency,and control the disclosure time strictly.Secondly,enhance the investers'quality.Finally,improve the relationship between the bank and the corporate and reinforce the bank's supervision on corporate's business.