An Empirical Study On The Impact Of The "Double Reduction" Policy On The Stock Price Of Companies In The Education And Training Industry

In order to continuously standardize the development of the education and training industry and effectively reduce the excessive learning burden of students in the compulsory education stage,China issued a "double reduction" policy on July 24,2021.The introduction of policies has received a rapid response in the stock market,which has had an important impact on the stock prices of relevant enterprises,and has aroused widespread attention from investors to the education and training market.Based on this,under the theoretical framework of capital asset pricing model,behavioral finance theory,and other theories,this article first uses the event study method to explore the short-term and long-term impact of the introduction of the "double reduction" policy on the stock price of education and training companies from the perspective of abnormal stock returns;Secondly,we introduce investor attention and use an intermediary effect model to test the transmission mechanism of the "double reduction" policy affecting the stock price return of education and training companies,to verify whether investor attention plays a mediating role in the transmission mechanism.Empirical research shows that:(1)In the short term,the introduction of the "double reduction" policy has a significant negative impact on the abnormal return rate of teaching and training companies’ stock prices,and its CAR reaches the minimum value of-5.87% in the second trading day after the introduction of the policy.After subdividing the sectors and regions to which the sample belongs,it is found that the stock price abnormal returns of education and training companies in the GEM market and pilot areas are more significantly affected by the short-term negative impact of the "double reduction" policy.(2)In the long run,the introduction of the "double reduction" policy has a significant positive impact on the abnormal return rate of teaching and training companies’ stock prices,with their BHAR reaching a maximum of 1.83% in the fifth month after the introduction of the policy.Further heterogeneity analysis found that the stock price abnormal returns of education and training companies in the GEM market and pilot areas are more significantly affected by the longterm positive impact of the "double reduction" policy.(3)The intermediary effect test shows that investors have played a partial intermediary role in the negative impact of the "double reduction" policy on stock prices by increasing their attention to the "double reduction" policy and thereby reducing the return on stock prices of educational and training companies.Under other control conditions,the indirect impact of investor attention on stock price returns is 8%.After a series of robustness tests,it is shown that the conclusions of this study still have significant reliability.In order to more effectively implement the implementation of "double reduction",policy makers should clarify policy objectives,reasonably adjust policy layout,match policy adjustments with the development needs of the times,and take appropriate countermeasures to ease investor tension and stabilize the financial market.Education and training companies should actively respond to relevant national policies,regulations,and measures,and achieve the transformation of the focus of business projects within the scope of policy permission.Investors should establish long-term and rational investment concepts,improve financial literacy,enhance stock selection ability,and then invest scientifically.