Research On Announcement Effect Of Executive Overweight In Listed Companies

In 2015,China's stock market fluctuated abnormally,and the stock price fell like a cliff,which not only disturbed the stability of the stock market,but also dealt a heavy blow to the confidence of market investors.On July 8,2015,China securities regulatory commission and Shanghai stock exchange issued relevant notices respectively,restricting shareholders and executives of listed companies from reducing their stock holdings,and explicitly encouraging shareholders and executives of listed companies to increase their stock holdings,so as to maintain the stability of the capital market.Under the influence of policies,the number of executives' overweight in listed companies has surged,and the behavior of executives' overweight has become a hot topic for Chinese scholars.Currently,all the researches on the announcement effect of executive overweight in listed companies in the academic circle only study the whole sample,and no scholars have grouped the whole sample according to industries to study whether the announcement effect of executive overweight in different industries is the same.As listed companies in different industries are at different stages of development and receive different attention from the market,the announcement effect of executive overweight of listed companies in different industries may be different.By studying the announcement effect of executive overweight in different industries,investors can specifically analyze the market reaction that may be caused by executive overweight from the perspective of the industry,so as to avoid losses caused by blind investment.Therefore,this paper attempts to investigate whether the announcement effect of the overweight of executives of listed companies in different industries is the same.Considering executives to increase policy factors and the characteristics of different industries,this paper takes 2013-2017 China's manufacturing industry,software,information services,scientific research and technology services,real estate industry in four industry executives increase its stake in listed companies as research samples,first of all samples were analyzed,and then carried out in accordance with the industry grouping the whole samples,analysis of different industry executives of listed companies to increase the announcement effect is the same.In addition,in order to further study,this paper also divided the whole sample into groups according to the nature of the company,the size of the company and the size of the amount of overweight,and observed whether there would be differences in the effect of the announcement of overweight of senior executives by sample.The findings are as follows :(1)the overweight of senior executives in listed companies can produce positive announcement effect,and the announcement effect of overweight in different industries is different.(2)the announcement effect of executive overweight of state-owned enterprises is greater than that of private enterprises.(3)compared with large-scale companies,the announcement of the increase of senior executives in small-scale companies can arouse a more positive reaction from the market.(4)the larger the amount of senior executives' overweight in listed companies,the stronger the announcement effect of senior executives' overweight.This article possible innovation points embodied in two aspects: one is the research point of innovation,the domestic existing literature on executives of listed companies increase announcement effect of the research scope is mostly the industry of the listed company,the sample according to the industry group,few scholars study the executives of listed companies of different industries to increase announcement of wealth effect is the same.The second is the innovation of research methods.In this paper,the whole sample is divided into groups according to the nature of the company,the size of the company and the size of the amount of overweight,to observe whether there will be differences in the effect of the announcement of overweight of senior executives.In addition,according to the disclosure requirements of "overweight first,then announcement" for Chinese senior executives,the day of announcement rather than the date of equity change is selected as the date of event,so as to avoid late market reaction and deviation of research results.