Research On The Impact Of Stock Market Reaction Of Listing Corporation Executives Crime

It is usually to see the listing Corporation executives crime problem since the convening of the the Eighteenth National Congress of the CPC. These executives crime not only affected the normal operation of the enterprise, but also brought huge fluctuation to the capital market,even the investor confidence has been a heavy blow. In recent years, executives crime problem has become the hot spot of research, scholars have studied the listing Corporation Executives Crime from different angles, and they discussed the specific measures and counter measures of listing Corporation executives crime on the basis of it. Although executives crime behavior is not same and the listing Corporation executives are also differences, but there are some consistency of the investors reaction on different executives crime incident caused.This consistency will bring the volatility to the stock market and affect investor behavior. Therefore,it is conducive to make promotion of their own development and a sound system of listing Corporation. To a certain extent,research on the stock market reaction can broaden our thinking of make promotion.And it can provide some suggestions for the healthy development of China’s stock market if we do research of the market reaction and the differences in the factors of listing Corporation Executives Crime market reaction.In this paper,we put listed company executives crime as a starting point, and then explore in the stock market how the investors look at the executives crime.In order to further explore how the executives crime as bad news impact on the stock market reaction and what effect it can bring, we also make study on how different equity properties, different scale and growth of enterprises can affect investor behavior and the listing Corporation’s stock market performance.The article is divided into five chapters. The first chapter is the introduction. It mainly introduces the research background, purpose and significance, the collation of the influence on domestic and international literature listing about the corporation executives crime and the stock market reaction. And then lists the possible innovation and deficiency. The second chapter is the related theoretical basis. Define the related concept, and explain the theory involved. The third chapter is the analysis of the present situation and reason of the listing Corporation’s top management crime. Through the sample statistics, analysis of the characteristics and the status quo of China’s listing Corporation Executives Crime, and the reasons for the current stage of executive crime are basically explained. The fourth chapter is the empirical analysis of the impact of the listing Corporation’s executive crime on the stock market reaction and its influencing factors. Mainly includes the research design and the model establishment, the research sample and the data origin, the empirical analysis as well as the empirical result. In this paper,we study on the changes of the stock’s abnormal return rate before and after the event happen by doing the research on the changes in window period of executives in the crime.And on this basis, we make the multiple regression equation to further analyze the different characteristics of the listed companies involved including growth, equity properties, firm size and ownership concentration degree and how these influence the stock market reaction.The fifth chapter is the conclusion and policy suggestions. According to the theory and data analysis results of the summary of the article, we found the problem, and then put forward relevant suggestions on the company’s own executives conduct supervision and regulation of securities market.The results of this study show that (1) the listing Corporation executives crime will have a negative effect on the short-term stock price, the negative effects in the criminal information released the same day and the second day especially. (2) the different nature of equity listing Corporation stock market reaction is different, when the listing Corporation for the non state-owned enterprises, the negative effect on the stock of executives crime more obvious. (3)the negative effect of good growth of the company’s market reaction is more significant, poor growth is not obvious (4)increase the executives crime will bring liquidity. These research conclusions provide some experience and basis for regulatory decision-making behavior of our investors and relevant departments.