Research On The Impact Of Policy Information On The Company's Stock Price

"The Belt and Road" has been the current event and hot spot,and it has been put forward and carried out smoothly,which has been promoting the rapid development of financial market,but also making the financial market face the severe challenge of volatility at the same time.In recent years,the academic circle has paid more attention to the study of stock price fluctuation.However,in the existing researches,few specific information events are selected to study the impact of price fluctuations on related stocks.Therefore,the research will be carried out from the new entry point based on the above problems.In this paper,"The Belt and Road" concept stock is used as the research object,which is aiming at studying the impact of the proposed policy information to related company stock price fluctuations.First of all,this paper analyzes the transmission mechanism of policy information on share price volatility.Compared with the mature stock market in foreign countries,China's stock market started late relatively.Furthermore,it has not established a complete system and an effective stable policy system to regulate the operation of the stock market.Due to the factors,such as information asymmetry in the stock market,investors' limited ability to process information and the psychological characteristics of irrational investment and so on,investors will have policy dependence,herd behavior and the other.This irrational behavior,which imitates other investors' trading activities,is followed by buying or selling,with following the crowd blindly.When the new policy information acts on the market,the stock market may overreact or underreact to new information,causing the phenomenon of abnormal fluctuations in the stock price in the short term.Next,this paper uses the event research method to carry on the empirical analysis.Then,with 62 " The Belt and Road " concept companies,including a total of six sub-sectors,as the research object,along with selecting five specific " The Belt and Road " policy information from 2015 to 2017,and defining the 10 days before and after the release of policy information(-10,10),a total of 20 days,as the event window.The index of each stock's closing price is calculated by means of logarithmic calculation,and market adjustment model is adopted to calculate the abnormal(AR)of each concept unit,and then calculate the cumulative abnormal return(CAR).So we're going to assume that CAR is equal to zero,and the T-test was carried out on the CAR and observe its significant number of days,to verify the existence of policy effect and overturn the original hypothesis.Using the weighted average of the market index as the market average yield and according to the calculated CAR value of the concept,the stocks are divided into "winner portfolio" and "loser combination",which is compared with the market average yield,to determine whether the stock market overreacts or underreacts to policy information with the result.Whether the policy information has an industry effect is related to whether the securities market can effectively adopt different regulatory measures for different industries.Therefore,it is necessary to study the influence of policy information.Moreover,comparative analysis of two major industrial indexes,including the industrial and material industries,to the market indexes,shows that there are industrial differences in the policy effect.Finally,based on the research results,this paper makes specific corresponding proposals to governments,the listed companies and investors each respectively.The governments should clarify its own functions and role position,follow the development rules of the securities market,and guide and regulate the market properly.The listed companies should also strengthen information disclosure,improve market transparency and constantly make financial innovations to diversify investors' choices.Investors should strengthen the study of financial knowledge as well as improve the judgment ability of independent decision-making and the ability to resist risk.Only through the joint efforts of the three parties can the market improve the quality of China's stock market,accelerate the process of stock market development,and ensure the smooth operation and healthy development of the stock market.