China Stock Exchange Publicly Denounced The Validity Of Empirical Research

The securities market is a financial capital market which raising fund and distributing resources. It plays a very important role in the development of national economy, yet it needs being supervised. Along with the continual innovation of the financial derivative and the continual participating in the international capital market, misconduct has brought the rock-ribbed challenge to the regulation system by right of the more covert means and advanced instrument. How to ensure the interests of each participant in the market, especially the fund providers' interests,how to maintain market faith through creating fair and competitive environment,how to control the flooding of inveracity information in the market,are always the missions of the securities legal system.The public censure is the severest sanction in the supervision of the Stock Exchange on the listed companies.The stock markets in developed market-oriented countries are also founded the similar mechanism,and the cooperative components systems have been set up. But the public censures of the China's Stock Exchanges have produced the entirely different result in practice. This paper studies the validation of the public censures of the China's Stock Exchanges by means of the Event-study Methodology.At first, this paper reviews the Effective Theory of the Capital Market and probes into the regulation and the continuous disclosure regulation of stock exchanges. It also analyzes the illegal or irregular activities, and reviews the relativity of the insider trading and the unusual stock fluctuation in particular. Based on the theories and the practices, the paper discusses the actuality and the studies of the public censures of the China's Stock Exchanges.Then, the paper analyses the validity of the public censures of the China's Stock Exchanges from a good many angle of view, such as single sample, gross sample, the difference of the objects, the year and the stock exchanges,the different announcement date which is disclosed by the listed company before or after the announcement of the public censures,the different proportion of the first shareholder. In addition, the paper also discusses the pre-disclosure of the public censures and sets up a Linear Regression to confirm the major factors with the Rotation Method in the Principal Component Analysis of the factors.Next, the paper discusses the actuality and the problem of the public censures of the China's Stock Exchanges and brings forward some advices about how to upgrade the validity of the public censures after the analyses of the major and deep-seatedfactors that affect the validity. This has a great theoretical and practical significance in improving the regulatory of information disclosure and healthily running stock market.At the end of this paper, we discuss the research conclusion and the practical value of the conclusion, explaining some researching shortage and bringing forward some suggestions for further study.