Influencing Factors And Study On The Regulation Of The Insider Trading In China Stock-market

Insider trading has already become a focused issue among scholars in different counties due to its harmfulness and concealment,the complexity of influencing factors and the difficulty in supervision in recent years.Insider trading,as the most common illegal behavior in the stock market,has always been severely cracked down and restricted by related departments.However,it acted remain incessant and even developed into a common problem in both developed and developing countries.Not only did this behavior undermine the normal operation and healthy development of the stock market,but also severely weakened the progress and intensity of the capitalist marketization reform.China's economic development has entered a new normal era.Information about public companies' Mergers and acquisitions is quite active.In order to enlarge the business scale and lower the operation risk at the same time,some public companies start to do the asset acquisition and debt restricting plan,which make capital in a high degree of liquidity.As a result,insider trading has become very common and it was difficult to maintain a fair and transparent image for regulators.The problems mentioned above laid the basic research foundation of this subject.Meanwhile,the current security market basically relied on the existing theoretical framework but lacked the monitor of quantitative economics models.Therefore,the theoretical framework needs to be improved and this article strives to quantify the implementation of the influencing factors of insider trading and the operability of the regulatory approach based on the above status.Therefore,based on the relevant information listed on CSR website from 2005 to 2017,this article analyzed the status of the insider trading in China's stock market from five dimensions : the number of insider trading,the subject of insider trading,the insider trading information,the insider trading behavior and the type of insider trading punishment.On this basis,in order to further examine the main influencing factors of insider trading behavior,this article selected 93 cases of administrative penalties announced from the website of the China Securities Regulatory Commission from 2013 to 2016,mainly including asset restructuring,mergers and acquisitions,major events,and high transfers.In the category,The performanceinformation class used the PIN model to measure the degree of insider trading and summarized descriptive statistical features.At the same time,a correlation test was used to examine the correlation of all variables,and then a multiple regression method was used to quantitatively analyze the number of board of directors,information disclosure index,legal system index,institutional investor share ratio,and other influencing factors.At the same time,this paper added indicators such as company scale,profitability and debt repayment as the control variables to the regression equation.The empirical conclusion showed that except the legal system index,other factors had significant influence on PIN value.Finally,based on the game model,this paper analyzed the probability of the occurrence of insider trading behaviors and the supervision agency's probability of its supervision behavior.It also put forward policy recommendations on the internal control of listed companies,the behavioral norms of institutional investors,the construction of information disclosure systems,and the construction and enforcement of the legal system.