The Research Of Insider Trading In China’s Stock Market: Regulatory Effectiveness And Market Response

Firstly，the paper studied the effectiveness of regulation of insidertrading to the A-share market using listed companies as samples that haveundergone significant events and the Commission and have not beenpunished. The study found that compared to the penalty companies forinsider trading by the Commission of the enterprise, non-punishedcompanies in the first announcement abnormal return is significantly lower.Research also found that in2012, after volatility recently judicialinterpretation after the introduction of insider trading regulationsignificantly enhance the effectiveness of a major insider trading played adeterrent. Secondly, the paper studied the factors affecting insider trading,this paper considers the corporate governance structure of the defects, lowtransparency, information asymmetry between investors and the legalenvironment of the poor is a major factor in insider trading behavior. In thesecond part, we study the market reaction to insider trading. By theCommission during the period was from1996to2013and was sentencedto a court punished insider trading company to do post-market performanceanalysis. The study found that companies were listed in the late insider trading thing with respect to insider trading of listed companies, did notsignificantly obtain lower excess returns. Insider trading of listedcompanies not to market and bring serious economic consequences.