Insider Equity Research Of Sunflowers Company

In recent years, insider trading is the attention of academia and the investment community. Insider trading is a new phenomenon since the equity division reform in our country, the equity division reform in 2005, made the controlling shareholders of listed companies can be traded in the securities market shares in the company. The executives of listed companies in 2006 also have stock exchange itself. At present, the domestic and foreign scholars research on insider trading mainly along three lines, one is the study of insider trading company before and after significant information disclosure situation, inspect whether insiders have information advantages and timing to get excess returns; two is the study of insider stock trading in the use of what information advantage and carry trade, because the information superiority has valuation judgment and forecasts two categories, Insider trading strategies with different information superiority; Three is the investigation of insider trading timing ability and the profitable, indirect presumption of insider trading is common in the use of the information advantage.Insider trading is likely to damage the interests of other investors, and ultimately harm the fairness and efficiency of capital market. Based on sunflower company as a case, this will open the information hierarchy based on insider, comparing the holdings of the controlling shareholders and senior executives, including its strategies, avoid loss or gain excess returns, the influence factors of underweight and put forward relevant Suggestions. Study found:(1) sunflower company’s executives on selling the shares in the company to use insider information strategy, the company sold before the material nonpublic information and avoid the loss.(2) Sunflower company’s controlling shareholder to sell shares in the company when using the strategic information disclosure strategy(disclose good news ahead of time, delay disclosure of bad news), and regardless of the length of the window period, before selling the CAR were significantly characterized by is, after selling the CAR were significantly negative performance, reduce excess returns are obtained.(3) The main factors that influence the insider selling strategy are different sizes of information rights and the legal risk.