| Choosing the companies which were punished by Securities Regulatory Commissionand judicature system according to the laws about insider trading and market manipulationas the sample, this paper analyzes the fluctuation of cumulative abnormal returns, theabnormal achievement index, the change of comparative volume, announcement effect andinsider trading effect. Based on event study,all of the results indicate that there is a seriousinsider trading activity in our securities market, and insider trading affects the price andvolume of stock outstandingly.Analyzing the characteristics of the samples, it is discovered that the most kind ofviolate way is market manipulation. The people who manipulate market can achieveastonished gain. Compared to the gain, the punishment of them is not worth mentioning.Insider trading hurt the interest of the investors who do not have much money, andinfluence the order of the securities market. Although there are many difficulties, thegovernment must supervise the securities market in order to establish a fit environment ofinvest. In the end, this passage discusses the implications of the economic analysis onlegislation and regulation on insider tradings. |
PDF Full Text Request