A Study On The Short Window Reaction And Performance Of Stock Rename On The Listed Companies In China

This thesis chose 498 renaming firms in Chinese A-share market from January 1,2011 to December 31,2016 as the research samples,studying the short window period(-5,+10)reaction of returns to the stock rename announcement by the method of event study.In 2014 China's second stock rename boom appeared on the securities market,study the characteristics and the short window market reaction of the listed rename company.According to the different reasons of stock rename,the total sample is divided into three types,including asset restructuring,primary business changes and others.In addition,this paper also investigates the various factors that influence the renaming announcement market reaction through multiple regression analysis.Finally,it analyzes the financial indicators of the rename company to investigate the performance of the listed company before and after the name change.The main conclusions of this thesis are: 1.There is a difference in the market effect of different rename reason types,among which the asset restructuring type and the primary business changes type reflect significantly.That means that investors can identify a name that has an empirical meaning,and react accordingly.The Multiple regression analysis shows that there is a significant positive correlation between the reason types and the market effect.The types of the asset restructuring,primary business change type have a significant promotion effect on the stock price rise,and the lower the stock price of the company,the longer the time of the listed company,the stronger the market reaction will be.Other factors such as the size of the company,profitability,shareholding ratio of the largest shareholder and the proportion of institutional shareholding have no significant correlation with the accumulated average excess returns during the name change announcement period.2.After excluding the influence of industry factors,the company's performance analysis showed that there were more companies whose fundamental indexes were lower after the rename(than before the rename).3.Short window period before and after the change of the stock has a positive cumulative excess return,and the information has been leaked before the announcement,the market has reacted in advance,and the reverse correction has been started in the third day.It means that the market has an early reaction and overreaction to the announcement.There is arbitrage space in the market,which is in conflict with the semi-strong and effective theory of Fama.Therefore,it is inferred that the securities market in China has not reached the semi-strong effect.The suggestions are as follows: 1.The supervision layer should improve the regulatory system and stock market system construction and implementation,pay special attention to information disclosure,reduce the abnormal speculation,and foster a rational and healthy market environment;2.Investors should carefully analyze the real reasons for the stock rename and the business performance of the renamed enterprise,so as to prevent the blind pursuit of heat from being cheated by the name change of the bad stock.We should also pay attention to government policy and be a rational investor.3.From the point of enterprise,especially the traditional industry transformation should take the initiative to seize the opportunities,improve the restructuring opportunities,strengthen the competitive level,so as to realize the emerging industrial upgrading,creating a favorable market environment for the investors.