Research On The Impact Of Listed Company Announcement Event On Stock Price

Listing Corporation has been announced by the close attention of investors, but also an important way to the listing Corporation to disclose the condition of corporate governance. The announcement of understanding on the development of the company and investors to make investment decisions based on this is very important, but also some good news for short-term investors speculation opportunities.For investors, rely on listing Corporation announcement for stock trading can obtain excess returns is higher than the market investors are very concerned about the problem, if the good news listing Corporation announcement did not make the stock price rise, then the information for investors worthless, but based on the announcement of investment decision is meaningless. For securities market regulators, to promote green and healthy development of the capital market has been an important goal of regulators. As an important part of the securities market listing Corporation, how to conduct a scientific supervision on the listing Corporation, have a greater impact on the market price of the stock of events more complete disclosure of all regulators to face the issues. For listing Corporation, the abnormal stock price fluctuations will affect the image of the listing Corporation. If the company performance of the stock market in two is poor, will give the company subsequent financing, including fixed gain and bond issuance bring certain influence.This paper aims to expose the influence of announcement on stock price, when the listing Corporation deviates from its intrinsic value in the stock price, the stock price return notice disclosure means to guide the intrinsic value, and suppress the irrational fluctuation, establish scientific market management system. In this paper, to solve the three problems:first, to explore how listing Corporation announcement effect on stock market; second, differences between different events impact on the stock market; third, by comparing the abnormal return and abnormal return to analyze the influence of the event effect and then making investment decision. Based on this, the research ideas are as follows:firstly, combing the application summary of event study method in the field of finance, and reviews the previous research on incident impact on stock price, to provide ideas for the further research. Next, based on the theoretical analysis, many listing Corporation announced the event based classification is discussed for each announcement for the stock price impact. Finally, by event analysis, statistical analysis and other methods, in order to estimate the impact of the stock price announcement for listing Corporation.In this paper the main methods for the event study method, preliminary empirical according to the characteristics of the benchmark model (CBBM) caused by abnormal returns calculation events can better effect alpha BMP t test, the type I error rate and the traditional t test is positive, but found abnormal income performance was stronger than the traditional t test therefore, in the empirical part of this paper mainly adopts the CBBM model and BMP-t test.Through the research, this paper found the following important conclusions:(1) four announcement executives holdings, equity incentive plan, ESOP and private placement in had produced a positive average cumulative abnormal return and the average cumulative abnormal returns, and the average cumulative abnormal return is significantly higher than the average cumulative abnormal return.(2) as the holding period extended, the effect of four types of events on the stock price, from high to low are private placement events, ESOP, executives holdings, equity incentive plan.(3) The private placement and the ESOP in listing Corporation in the lower frequency, the incident is unexpected good events greatly on the market, the stock price has a very good performance in the short term. On the contrary holdings of executives and equity incentive plan events of high frequency, the incident occurred after the return is only slightly stronger than normal income and the market benchmark.Finally, according to the empirical results for investors, regulators and listing Corporation are put forward corresponding suggestions. On the one hand, for short-term investors, to obtain better returns the corresponding options to buy listing Corporation stock average in the private placement and employee stock ownership plan after, especially in the private placement events. For long-term investors, although the private placement and the ESOP has a good profit in the short term, but be wary of the risk of decline in revenue, while the holdings of executives and equity incentive plans yield short-term low growth rate is relatively slow, but the benefits are not large retracement. If investors value the excess income should choose private placement and ESOP, if investors value the abnormal return and want to maintain yields steady overall long-term holdings of executives and consider the equity incentive plan. On the other hand, the listing Corporation can take a proactive decision to boost the market value of the company, regulators should improve the information disclosure process and system, strengthen information disclosure violation penalties, to prevent insider news, "rat" destroy the fair market behavior.