| China’s securities market played an important role from establishment to development, at the same time, various kinds of illegal phenomenon always happened and in all illegal phenomenon, insider trading particularly important to study. The paper will use theory of insider trading, to explain asymmetric information theory of insider trading and securities market, and the theory of the securities market efficiency. Also will through the method of empirical to study how insider trading influence on China’s securities market efficiency.In one hand, this paper will collect 102 typical cases of insider trading since 2000, through the comparison and analysis of the typical cases, sum up the common type of inside information, main body type of insider trading, the performance of the insider trading.In the other hand, combining with the actual situation of insider trading about our country’s securities market, through the method of empirical we study Chinese securities market efficiency, analysis on the current situation of the development of securities market and the existing empirical defects of our country. The fundamental purpose of empirical research is: to examine the influence of stock price and analysis how insider trading influence on China’s securities market efficiency. The article will first calculate the average regression, variance, summation of five typical stocks’ price; second will take the runs test method to examine the influence of the effectiveness of insider trading on the stock market in China. Base on five typical insider trading cases and compare with the stock prices of first year, second year, third year, to research insider tracing’s influence on China’s securities market efficiency. |
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