An Empirical Study On The Market Reaction Of Listing Corporation Delisting System

The establishment and development of the securities market is one of the important achievements of the socialist market economic system. It has become an important part of our socialist market economy system. It plays an important role in the reform of economic system and the reform of state-owned enterprises and the development of national economy. Effective securities market should be a "elite enterprise" which is beneficial to the social resources, and realize the reasonable and effective allocation of financial capital. However, with the pivotal status is not matched, the securities market in our country has a lot to do with the western mature market. Listing Corporation "zombie" phenomenon is one of them:some bad performance, management difficulties and even the insolvency of the listing Corporation not only can continue to exist in the securities market, but also appeared to be market speculation, the value of a serious overestimate. Such a serious impact on the stability of the securities market and effective protection of the interests of small investors. Therefore, the reasonable and effective "exit mechanism" of the securities market is very urgent.This paper first reviews the domestic and foreign delisting mechanism and its market utility related literature to sort out the reasonable and effective delisting mechanism can significantly optimize the allocation of market resources, mature market for delisting reaction tends to rational. On this basis, we put forward the hypothesis, and take the delisting system of our country as the object, and the previous delisting system was published in 2001,2012, 2014, three years ST company as the research sample, using the statistical software SPSS 16.0 to the market effect and the influence factors of the delisting system of the listing Corporation under the condition of the multiple linear regression. Finally, the research results and suggestions are put forward.Through empirical research:1.in the delisting system near *ST, ST shares of the company's shares have been sold, the stock price fell significantly. The cumulative abnormal return of investors is negative, and the market is negative. At the same time, we have obtained the factors that affect the market negative reaction rate. In contrast, non ST stock market reaction is not significant.2. in ST and *ST, relatively speaking, the performance of the company, the company has a strong profitability, the probability of a loss of third years, which means that better performance of the company is forced to withdraw from the smaller, so in the vicinity of the delisting system issued a number of trading days, the possibility of falling stock prices is also small.3.ST and *ST listing Corporation due to two consecutive years of financial losses, the company will have the possibility of earnings management, to achieve profitability, so as to get rid of the risk of delisting, even to uncap the purpose, however, so the company has brought potential regulatory and financial risk, the investor's legitimate rights and interests has been compromised, so in the delisting of the promulgation date near several trading days, the possibility of increasing risk of price decline.4.from the delisting system of the market reaction, the market validity of the delisting system is verified, but still need to be further improved.