The Study On Market Reactions Of Insider Trading Of Listed Companies In China

From the view of the world economy development, the securities market has nearly hundred years of history, but our country’s securities market can only be traced back to December1990, namely the first stock exchange-the establishment of the Shanghai stock exchange.The time of our country securities market development is shorter. Not only because of the above reason, but also under the influence of various factors in the process of development, the stock market appeared some problems. These problems become the important reasons for insider trading in the securities market. Lack of the market system, rules, and supervision of market regulators also make repeated of insider trading behaviors.Insider trading has become a major problem faced by national securities regulator, but also a hot issue of academic research. In recent years, a large number of studies conducted by scholars at home and abroad for insider trading have focused on the harm of insider trading, regulation, measurement, influencing factors and so on. Also some scholars research insider trading company cause of merger, acquisition and reorganization and so on. However, the research on companies of insider trading which has been announced and punished is relatively less, especially on the basis data of the China Securities Regulatory Commission (CSRC) penalty much less.The research of this dissertation is:first, the research analyzes the current research situation, related theory, the evolution of legal regulation of insider trading in Chinese securities market; then, the research chooses insider trading events which is publicly released by insider trading penalty decisions on the China Securities Regulatory Commission website as the research object. The research uses event study as the main research method, and investigates the change of cumulative abnormal returns and the average cumulative abnormal returns between in the middle of insider information sensitive period and15business day after insider information sensitive period. It is concluded that market response of insider trading, as the basis of judging whether other companies have insider trading, and provides a new perspective and direction for the study of theoretical analysis; finally, this paper expounds about the defects and the suggestions of the system construction of insider trading, and makes prospect for the future.