A Study On The Market Reaction Of China's Growth In GEM

Chinese gem officially listed on October 30,2009,it has been more than seven years time,in order to gem can develop stable and effective in the early stages of its listed market,Shenzhen Stock Exchange has also formulated a series of regulations to the shareholders of listed companies is restricted by the reduction in the time.At present,our country not only has a condition of information asymmetry in the market environment,and the GEM market in China started in the early days has been due to the reduction of executives are troubled,so executives as the company insiders,the investors are much attention to every act and every move.For investors,the executives of change in holding shares of whether to increase or decrease the stock as its basis,the behavior of the executives not only represents the trend of income may be the future of the company,but also may have some impact on the stock market.However,since since the opening of the gem,the scholars mainly study is the gem by executives incentive problems in our country to the reduction of executives and market reaction is relatively small,and the related literature review found that China's gem executives reduction of sample data in literature research to market reaction is 2013 or before 2013,that is,in the first batch of gem restricted shares lifted before and after.In the view of the past two years,the number of gem holdings of executives in China is obviously less than the reduction of executives,and because different in different periods of regulation promulgated by the government,so China's gem executives to change the number of reduction stages of existence.This paper from October 30,2009 to February 4,2017 for the sample,and the sample period is divided into four stages,according to the wind database of restricted shares lifted the sample processing,finally get the limited ban the sale of shares of a total of 10394 events.The empirical study is based on the China gem executives holdings events as the research object,and the stock price pressure theory,signal theory and the basic theory of supply and demand on the normal rate of return through the market model of executives holdings of shares by using the event study method and abnormal rate of return,most must the uncertain enough "significant test of significance".Firstly,the gem restricted shares lifted the market analysis,the sample period is divided into before and after,the first batch of gem restricted shares of restricted shares lifted before and after the stock market crash suffered massive and "rescue" relative to the free flow of these four stages,then the gem executives of four different stages of reduction the market reaction are studied,finally to study of the four periods were compared each other in analysis.Gem as a new type of market and the motherboard market is not the same,there is more uncertainty and instability in the gem market.Gem listing time is very short,the stock not only pay close attention to many investors,is being sought after and speculation investors,which also attracted investors blindly follow the trend of other sections in the gem,the attention degree and the sustained higher the market reaction of the gem is too sensitive.According to the empirical results the following conclusions:first,in the four different stages,reduction of executives is the existence of "timing" behavior,so the different stages of the market reaction by executives have different degree of strength;secondly,executives will reduce the market reaction to produce negative influence,coupled with the reduction of information effect brought to market,will enhance the negative reaction.Finally,through the disclosure of the date of the transaction and the background of the system,it is found that some executives have the phenomenon of illegal holdings.China's GEM executives of the substantial reduction is clearly the future development of the company has an early warning role.Based on the above empirical results,this paper puts forward some suggestions on the future development of China's GEM market,not only to control the issuance of high price-earnings ratio of the GEM,but also to improve the information transparency of the innovation board,and to change the information disclosure.In addition,we should increase the penalties for the reduction of executive rights in our country,and incorporate the indirect reduction of executives into the scope of supervision.