An Empirical Study Of The Stock Market Reaction To Group Overall Listing

Ever since 2004,overall listing which acts as an institutional innovation has been the most popular topic in our country stock market.Especially,after the overall listing of TCL group and Wu Gang Co.Ltd,many groups and big companies expressed the wish to be overall listed.Then the concept of "overall listing"fulfilled the whole stock market of China.Under this background,the paper is an empirical study of the stock market response to news that the Group overall listing.This article has selected from May 1,2005 to July 1,2007 in China's securities market has announced that the overall listing of the 47 companies as a sample inspection group listed as a whole news that the stock market reaction.This article first proposed two assumptions in theoretical analysis's foundation, the assumption 1:The Stock market has positive response to the Group overall listing announcement; the assumption 2:The Stock market response to the Group overall listing through equity private placement is better than through other ways to realize overall listing.Then using the event study to test all samples, respectively, the abnormal return and the cumulated abnormal return of the window periods have been tested, and different windows of the accumulated abnormal return for the test, the initial assumptions that 1,2 was verified. Finally, the factors which influence the stock market response to the overall listing were analyzed using multiple regression analysis, has further confirmed the assumption 2 accuracy.The research discovered that the Stock market to Group overall listing is positive, and the market response to equity private placement overall listing is better than the other ways of overall listing. Based on the above analysis, to give some suggestions, the related departments must advance the Groups which have the ability to realize overall listing, and must select the method as far as possible the equity private placement.