Research On The Price Effect Of "Placards" And Impact Factors

"Placards" refers to the listed company announcements when the percentage of shareholders' stake-raising degree reaches the figure of 5%or an integral multiple of 5%.In the early period of A-share market,events of placards occurred with low frequency,which rarely drew attention of investors as well as the media.In the past two years,on the circumstances that A-share market encountered several disasters,some institutions and industrial capital that are represented by insurance funds created placards frequently."placards" became a hot word,which almost swept over the whole stock market and also created apparent stock plate effect.Scholars have fully researched the stock price effect of all kinds of significant events in the stock market,however,there are few researches about the stock price effect of placards due to its low frequency up to the year of 2015.According to the statistical data,the event of placards happened 169 times in A-share market before 2013,however,in the year of 2015 and 2016,the event of placards happened over 200 times,all of which provided abundant sample data to the research of stock price effect of placards.I will do the further research of stock price effect as well as the impact factors of effect on the basis of former researches about stake-raising during 2015-2016.In this article,I will use the methods of event study and single sample t-test to illustrate the stock price effect and the significance of abnormal return for listed companies that experienced placards.The conclusion is that the stock price effect of placards is positive.However,the significant positive abnormal return only appears in the short period around the placards.The stock price of sample listed companies experiences rapid rising in the short period after placards,the behavior of buying high price stock in this particular juncture is meaningless to acquire significant abnormal return.Meanwhile,part of the sample stocks experiences the phenomenon of over-reaction within 15 days after the placards.As for the empirical research for impact factors of stock price effect,I choose the method of multiple linear regression analysis in this article,coming to a conclusion:in the short time window,return on equity,asset-liability ratio,market circumstances and cumulative abnormal return rate before placards exert great influence on the stock price effect.In the medium time window,the market value of listed companies,asset-liability ratio,market circumstances and cumulative abnormal return rate before placards exert great influence on the stock price effect.The shareholding ratio of controlling stockholder and cumulative turnover ratio before placards exert some influence on these two time windows,however,the influence is not significant.The styles of placards makers and listed companies that experience placards almost make no difference to the stock price effect.