Nominal Stock Price Illusion And Managers’ Catering

Listed companies in the "high transfer" before and after,the listed companies’ fundamentals did not change but the companies’ shareholders of the internal structure of equity adjustment,which is consistent with the stock split,that is in the "high transfer" and stock split before and after the value of listed companies and investors to invest in the interests of investors should not have any changes,and the most significant change is the nominal price of the stock fell accordingly.In other words,under the expectation of stock investors’ rationality,investors will not be given extra preference for "high transfer",even though the nominal stock price will be reduced significantly before and after the "high transfer".That is the value of the company will not have any changes and the so-called "high transfer" market will not be in the A-share market.However,the reality is this,not only in the A-share market investors are keen on the "high transfer" stocks,and even the market has been a special "high transfer" plate,and listed companies are more and more "love" In the "high transfer",which is the traditional theory of finance can not explain.Therefore,we use the theory of catering to study the unique "high transfer" phenomenon of A-share market from the perspective of behavioral finance.This paper argues that investors are chasing the "high transfer" stock because the huge "gap" makes investors think the stock becomes "cheaper",with more "growth space".And listed companies is through the "high transfer" to meet and use the nominal price of investors to cater its illusion to satisfy its self-interest,revealing the implicit infringement problem caused by the different degree of rationality of market participants,and then provide new ideas for strengthening the supervision of listed companies and the remediation of small and medium investors’ behavior preferences.In order to demonstrate the above view,this paper aims at the following studies of the "high transfer" of A shares from 2015 to 2016 and draws the following conclusions:(1)This paper uses the Logit and Probit regression methods to study the relationship between the "high transfer" behavior of listed companies and the illusion of the nominal stock price of investors.It is found that the more obvious the illusion of investors’ nominal stock price is more likely to be "high transfer" Out,"high transfer" is a listed company to meet the nominal behavior of investors illusion of behavior;(2)This paper uses the fixed effect panel data model to study the listed company "high transfer" behavior and its current stock rate of return relationship between the results found that listed companies "high transfer" decision on the current stock returns have a significant positive impact,In other words,the use of investors in the "high transfer" in the current period due to the nominal price in the "high transfer" before and after the huge gap caused by irrational preferences to achieve short-term stock of the right to maximize the weight,and then realize its market value management objectives;(3)This paper uses the number of shareholders,the proportion of shares and the number of individual shareholders and institutional shareholders to study the "high transfer" of listed companies in order to cater for the preference of individual investors for low-priced stocks in the half-year period.The significant increase in the market efficiency of the listed companies "high transfer" was caused by the increase in the number of shareholders in the current period.Further research found that the increase in the number of individual investors was caused.It is concluded that the "high transfer" of listed companies is to cater to the nominal stock price illusion of individual investors rather than institutional investors;(4)This paper constructs investors’ net buying indicators to characterize the investment behavior of various types of investors to study the "high transfer" of listed companies in the half-year period in order to cater to the nominal price illusion of the kind of investors.To this end,this article on the one hand the use of fixed-effect panel data model to study the listed company "high transfer" decision on the various types of investors net buy rate impact,the results of listed companies "high transfer" is to meet the retail investment On the other hand,this article through the study of "high transfer" current investors net change in the rate of change and the "high transfer" to increase the ratio between the ratio to further from the side to verify the listed company " High transfer " is indeed to meet the retail investors in the name of the stock price illusion;(5)On the basis of weekly data to supplement the verification,the results show that in the "high transfer" plan week,"high transfer" plan announced market efficiency significantly positive and significant positive market efficiency is due to retail investors and investors on the "high transfer" stock net purchase Increase the rate caused.Further research found that retailers and middle-class investors in the "high transfer" plan announced on the "high transfer" stock net increase in the rate,to a certain extent,because the nominal price illusion led to low-priced stocks Of the preferences,but to a greater extent because of the "high send" speculation effect led to the "high transfer" stock blindly keen.In addition,in the "high transfer" ex-dividend week,the empirical study found that "high transfer" ex-dividend dividend week significantly negative market efficiency is mainly by the retail investors on the "high transfer" stock net purchase rate Increase,and retail investors in the "high transfer" ex-dividend interest rate week net increase in the rate is due to the nominal price illusion caused by low-cost stock preferences.It is concluded that a large number of institutions and large investors are aware that retail investors have a more serious nominal price illusion,so in the ex-dividend week before the advance layout and then ex-dividend week in the reverse operation,resulting in ex-dividend week’s market efficiency negative.