Stock Increase Announcements By Controlling Shareholders Around The Bear Market

On June 2015, Leveraged bull market in China stopped and stock crash happened which experienced thousands of limit down events and thousands of suspension events.The investors'confidence get devastated heavily on the markets.In order to maintain the stability of the capital market, the Chinese government introduced a series of measures and policies to rebuild the confidence, on July 8th2015, China Securities Regulatory Commission released the 51st on 2015 announcement which further eased the rules of stock increase activities by the major share holders and the directors, supervisors and senior administrators of the companies, then there appeared a serious of stock increase activities in the market.As the insider traders,controlling shareholders has the advantage of more information, and more influence on the company. Thus theoretically stock increase activities by controlling shareholders will show strong signal transmission functions. This paper used event study.Using listed firms of stock increase announcements took place in from July to September on 2015 by controlling shareholders on open market as samples, and made empirical research of market reaction before and after a short period of the announcements. The research results show that there were positive market effects after the announcement of a period of time. The influence factors of the market reaction were also tested by the single factor analysis and regression analysis.