A Research On Excess Earnings From Exchange Of Stocks Of Insiders’relatives In Chinese Listed Companies

Insider trading has always been concerned, and insider trading of stocks relative has been neglected. The Shenzhen Stock Exchange statistics show that since2009, February16, to March17, the Shenzhen main board market, there were77times listed company executives and relative business share trading, among them, the executive I buy and sell stocks trading only21times, and the listed company executives relatives buy and sell stocks trading up to56times, accounting for more than72.7%. From the listed company executives’relatives frequently buy and sell stocks behavior perspective, it is difficult to eliminate the insider trading; illegal operation has been fully revealed the present market problems. If this problem cannot be solved, it is difficult to ordinary investors in the stock market fair, open, just to get legal investment income.In China, so far, insiders relatives in addition to perform "in deal, two hand in easy days reporting and disclosure" obligations outside, insider trading in company stock no other clear requirements. The securities law, the provisions of article47, the listed company executives have this company stock after buying in6months, or sell6months after selling and buying, the board of directors of the company shall withdraw the proceeds. For a listed company executives relatives buy and sell stocks, exchange rules, the listed company executives shall ensure that the parents, spouse, children and relatives do not occur because learn inside information and buying and selling the shares of the company and its derived varieties behavior. But there is no clear limit executive relative frequency of buy and sell stocks. If the listed company executives took his family account do short line operation, and then6months limit is a kind of decoration.Relatives insider stock trading behavior frequently appear, significantly increased the share price volatility, increased market risks, and has also become the investors pay close attention to the object. This paper studies for the authorities formulate relevant regulations to provide basis for more cause supervision unit to relatives insider trading attention, perfect relevant law, maintain the securities market more fair and just, and also enhance investor confidence.This paper mainly uses description statistics, event study method and multiple regression model. Shenzhen based on January1,2010to June30,2012relatives insider stock trading data statistical analysis found that the listed company insider relatives on insider trading of stocks in the enterprise has more than the number of insider own trades, and there is a short term trading and sensitive period transactions. This paper use event study method, the study found that the insider stock trading, relatives won the excess earnings. Secondly, in the inspection, on the basis of excess profits by using multiple regression model, analyzes the impact of insider relative excess gains impact factors, the empirical results support the information hierarchy hypothesis and information asymmetry hypothesis.Through the research, this paper holds that relatives insider stock trading behavior should be regulators attention, especially vigilant insider relatives may be the substitution of insider trading regulation.