The Empirical Study On Insider Trading In China Stock Market

First ,the article give a clear definition of insider trading and analyzes its key components. Based on the realities in Chinese stock market and the summarization of correlative theory, to the questions in previous research, I improve the existing research approach and sample data selection. The thesis analyzes a sample of Shanghai and Shenzhen listed companies which had a retained profits change ratio above 10%. And then, we conduct an empirical study on insider trading. The result shows that insider trading is common and serious in China stock market, and it goes with good news more often than bad news.The analyzes shows that the reasons that insider trading is common and serious in China stock market are not only the lack of supervising efficiency on insider trading is not strict, but also corporate governance of listed companies is imperfect. The empirical study result shows that the positive correlation exists significantly between insider trading and state-owned share, the negative correlation exists significantly between insider trading and legal person's and ordinary share.To this situation, we discuss some policy implications including Strengthen insider trading legislation, Standardize enforcement of insider trading law; ameliorate corporate governance etc.