Related Party Cooperation and Stock Prices Reactions: An Empirical Investigation on the A-Share Listed Companies in China

摘要

Taking the 146 related-party technological cooperation announcements by Chinese listed companies from January 2008 to July 2013 as the sample, the article investigates the impact of the focal firms' intellectual capital and cooperation frequency between related parties on the focal firms' stock prices reactions. The empirical results indicate that focal firms involved in related-party technological cooperation receive strongly positive abnormal returns over the event window of (-1). We show that the cooperation announcements may bring positive stock prices reactions if the focal firms show a higher level of intellectual capital. In addition, our findings suggest that more cooperative activities between related parties may bring positive effects on the stock prices reactions for the focal firms.