Insider trading, institutional holding and performance of the capital reduction companies

摘要

To improve the company''s financial structure, "capital reduction" became the way which the company operators often use. Capital reduction, that is, the company through the statutory procedures to remove equity to reduce capital. This study discusses the relationships among the internal ownership changing, institutional ownership changing and performance of the capital reduction companies. The period is 1997–2009. First, we find that, capital-reduction company''s stock return will bring abnormal return before half year. Second, insider know more information than institutional investors, thus, institutional investors'' skill is not good we think.