An Empirical Study On The Influencing Factors Of Insider Trading In Mergers And Acquisitions Of Listed Companies In China

As an important means of resource allocation and structural adjustment in capital market,mergers and acquisitions is an effective means of multidimensional balanced development,which to promote continuous optimization,to upgrade the industrial structure.In recent years,mergers and acquisitions is being encouraged and supported by the government.But under the profit-driven capital market,mergers and acquisitions of information insider knowledge workers tend to use these material non-public information to make profit,which leads to insider trading behavior in the process of mergers and acquisitions.According to the statistics,in 2015,the China securities regulatory commission and the judicial organs have 85 pieces of insider trading case,nearly half involves the use of mergers and acquisitions information for insider trading.The frequent insider trading behavior has disordered the process of mergers and acquisitions and the development of the capital market,and do harm to the interests of small and medium-sized investors.Therefore,in this reality,the influence factors of insider trading of the mergers and acquisitions of listed companies in our country are studied in this paper.First of all,it summarizes that the measurement of insider trading,the influence factors of insider trading and insider trading regulation in the foreign research as well as the domestic m&a.Secondly,based on the analysis of the basic concepts and characteristics of insider trading during the current mergers and acquisitions in our country,we put forward to the hypothesis of this article,and then use event study method,choosing the China’s Shanghai and Shenzhen a-share market in 2015 for mergers and acquisitions of 257 listed companies as samples,using multiple regression model to make analysis about the factors which influence on insider trading.The study found that exist the insider trading in the process of M&A in China,and having found that the listed company governance structure,information disclosure level,qualifications of financial adviser and legal system environment are important factors leading to the insider trading,among of these factors,the financial adviser qualification factors make more influence to mergers and acquisitions of insider trading,the level of information disclosure is the second,and the legal system environment is relatively small.Inthe internal governance structure factors,it finds that the impact of the independent directors of insider trading,followed the influence of ownership concentration,board members relatively minimal impact on insider trading.Finally,it discusses the regulation of mergers and acquisitions insider trading and makes some policy suggestions.