Research On The Causes And Effects Of Insider Trading In The Merger And Reorganization Of Y Company

Since the implementation of the reform and opening up in the 1970 s,China's capital market has gone through a process of development from scratch and growing continuously.The overall size of the market has ranked the second in the world,which has played a huge role in promoting China's economic prosperity.China's securities market with the trend of economic development has entered the stage of rapid development of gold,merger,acquisition and reorganization activities in the capital of enterprises,improve enterprise competitiveness,accelerate industry consolidation,optimization of resource allocation in capital markets play a crucial role,merger and acquisition of the company itself will add policies to promote,now between enterprises m&a activities in the securities market is very active,tens of thousands of enterprises to join in this activity,the market turnover rising,high frequency of merger,acquisition and reorganization activities phenomenon has long been a surprise.In this context,the illegal behavior of insider trading frequently appears,seriously hinders the process of mergers and reorganizations of listed companies,undermines the confidence of investors in the securities market,undermines the fairness and justice of the capital market,and restricts the sustainable and healthy development of the capital market.In the critical period is in the capital market development in our country,because of the concealment of the insider trading itself,is a huge speculative gains traits,such as merger,acquisition and reorganization of the increasing cases of insider trading laws,2018 and 2019,total dealt with 142 cases of insider trading case,merger,acquisition and reorganization of listed companies to prevent insider trading is always the hot topic in the securities market,and the securities and futures commission to crack down on crime of key research issues in the securities market,therefore,in this paper,combined with specific case study has the necessity and importance of insider trading,has the certain practical significance.Based on Y company as a case,this paper combines the literature reading method,single case analysis and event study method,three kinds of research methods,first of all related concept and the basic theory,elaborated this select Y company mergers and acquisitions in the X company insider trading for the specific case,this paper introduces the whole process of the merger,acquisition and reorganization activities and the specific situation of insider trading case,analyzed the reasons of the insider trading and insider trading will be discussed in detail from different angles.Through a complete analysis of the insider trading cases in the merger and acquisition of company Y,the author finds that the reasons for insider trading lie in the asymmetric information and the pursuit of huge profits from speculation,etc.,and the consequences of illegal insider trading are also very harmful.Based on this,the author believes that the regulatory authorities should proceed from the three dimensions of before,during,and after the event,strengthen the crackdown on insider trading,establish rules to improve the quality and speed of mandatory and voluntary information disclosure of listed companies,and put forward specific Suggestions to the participants in the securities market and the subjects of listed companies.