Analysis Of The Impact Of Stock Suspension And Resumption On The Medium And Long Term Fluctuation Of Stock Price

The suspension system is one of the international normative means of the stock market.The suspension system is considered as an important mechanism of market price stabilization and has been widely used in the global securities market.Its main purpose is to reduce the asymmetry of information,so that investors can have enough time to reassess asset prices when important new information arrives,and adjust their trading strategies accordingly(or buy,sell,withdraw or change),so as to improve the transparency of the securities market and protect the interests of investors.For suspended stocks,the time of suspension,the announcement content and the nature of the information it conveys,the duration of suspension,whether the suspended stocks are delisted after suspension,and the time and manner of resumption will affect the trading behavior of investors.The most direct way to obtain the information of stock suspension is to interpret the announcement of stock suspension.Therefore,the length of the announcement and the emotion of the text have a direct impact on the price fluctuation and long-term trend of the stock after reopening.Taking the suspension announcement of listed companies as the research object,this paper selects the constituent stocks corresponding to the current Shanghai-Shenzhen 300 index and the China Securities 500 index for five years from 2014 to 2018,screens the stock price sequence before and after the suspension and resumption of trading,uses the text leng-th of the suspension announcement as the proxy variable of the readability of the announcement,and incorporates the text emotional index of the suspension announcement into the announcement.Considering and supplemented by stock price and other market sequence data,this paper constructs a regression model for the volatility of stock price after reopening,and focuses on the analysis of the volatility of short-term stock price and the rise and fall of long-term stock price after reopening of listed companies by the readability index of announcement and emotional index of suspension announcement text.The results show that,with the text emotional tendency of suspension announcement having a positive impact on stock volatility,it is interpreted as a more positive announcement text,which attracts more investors to trade,but objectively increases the volatility of stock price.At the same time,longer suspension time also increases the volatility of short-terrm stock price.This conclusion is in line with investors'more inclination.To invest in markets with shorter suspension time and more continuous operating conditions.This paper attempts to classify and predict the long-term rise and fall of stock prices in the suspension operation of listed companies,verifies that the emotional indicators of the suspension announcement have relatively high characteristic importance for the long-term stock prices,and proves that the interpretive ability of the readability indicators of the suspension announcement is relatively weak.