Research On Impact Of Facilitating Faster And More Affordable Internet Connection Policies On Internet Campanies Stock Price

Under the background that the government promotes the meaningful integration of new generation information technology such as industrial Internet,cloud computing,big data,artificial intelligence and manufacturing industry,and puts forward a series of Policies on Facilitating Faster and More Affordable Internet Connection.This paper focuses on whether and how the policy has an effect on the stock price of Internet enterprises.The purpose of the study is to detect whether the policy results are effective and provide advises for the development of Internet enterprises and the implementation of policies.This paper mainly uses the market model and the event study method to verify whether the Policies on Facilitating Faster and More Affordable Internet Connection has a positive impact on Internet enterprises' excess return.Additionally,paper further discusses the influencing factors of Internet enterprises' obtaining excess return.Relating to the threefactor model and other domestic and foreign scholars' research,it introduces the enterprise value factor and non-value factor and establishes the factor decomposition model.The analysis results are shown that in the Internet industry,enterprise liquidity has a strong positive correlation with the CAR,while the book-to-market ratio that characterizes the growth of the company has a strong negative correlation.There is no significant relationship between the factors of valuation level and survival and CAR.Tier-level Internet companies would receive more CAR than service-level Internet companies.Depending upon this conclusion,it provides reference suggestions for the government,enterprises and investors.Based on qualitative analysis,existed policy researchers discuss the necessity of policy introduction and the reference of foreign policies.While the quantitative research on the influence of the Policies on Facilitating Faster and More Affordable Internet Connection on related industries is insufficient.Rather than concentrating on the policy itself,the impact of the policy on Internet companies in this paper is quantified as the CAR of listed Internet companies,selecting uniform and standardized financial indicators and stock market transaction data.The research method is commonly used to study the impact of various policies on stock prices.The event analysis method has a high degree of reliability,so the research in this paper has a certain speculative significance.