Short-Term Effects of Circulation of All Shares: an Empirical Study on Listed Companies

摘要

Using standard event study method,this paper examines the impact of the reform of non-tradable shares on China's stock market.The empirical result indicates that shares experienced significant gains before suspension and significant losses after resumption of trading.The result is also consistent with the fact that abnormal returns are the result of stock market reaction to the reform of non-tradable shares.And there are differences among different batches of shares in the reform.This paper also discussed whether the level of consideration would exert a significant impact on share price,and denied any relationships between them.