Research On Significant Information Disclosure Of Listed Companies And Stock Price Abnormal Fluctuation

With the rapid growth of China’s economy, financing securitization becomes an important approach to allocate the capital. The impact of capital market on the real economy is becoming more and more important and its steady and healthy development is significant to the transformation and growth of the real economy in our country. However, the abnormal fluctuation in Chinese capital market is very common which will hinder the financing function of capital market and is not conducive to the healthy development of the real economy. Capital market is the market of information flow, and the factors affecting the stock price fluctuation are also various. Among these factors, the significant information released by the listed company is the most direct influence of abnormal stock price fluctuations, and is also one of the most important and common factors. The reason is that the price of a stock is determined by the listed company’s future value stream which is reflected by the various information flows released by the company, especially the significant information disclosed by listed companies. And the important information may have a huge impact on the future development of the company. Therefore, to explore how the significant information of listed companies affects the abnormal fluctuations of stock price is very useful for the construction of China’s capital market and the protection of the interests of small and medium-sized investors. Based on the significant information disclosure of listed companies, this paper uses the event study method and selects the abnormal returns as examining index to research the relationship between significant information disclosure and stock price abnormal fluctuation. First of all, we conduct an empirical study of the listed companies which release important information and then we classify the significant information. At the last, this article analyzed an acquisition case study of purchase of Tian Xiang Hu Dong Company by Jin Ya Technology Company. The conclusions of this paper are as follows. Firstly, there is serious information leakage and insider trading in all kinds of significant information disclosure, which make stock price fluctuate more abnormally and frequently. Secondly the assets reorganization and ownership structure change of significant information disclosure is more likely to cause abnormal fluctuations in stock prices than the personnel changes, earnings changes and suspected of illegal significant information disclosure. Thirdly, in the short term, the good kind of significant information disclosure is easier to make produce abnormal fluctuations than the bad kind of significant information disclosure and the fluctuations of the amplitude and wave frequency is higher. Fourthly, in the face of the good kind of significant positive abnormal fluctuations in stock price caused by information disclosure, small and medium-sized investors can only get smaller abnormal profits. However, to meet the bad kind of significant information disclosure, the small and medium-sized investors will suffer more losses. On the basis of the above research conclusions, we put forward policy recommendations to improve the information disclosure system of listed companies and avoid abnormal fluctuations in stock price.