A Study On The Stock Price Effect Of "Placarding" Caused By Different Kinds Of Capital In A-share Market

"placarding" is not an official term but a common name in the industry,it's also known as stocks increasing and shares acquisition.Although placarding have long existed in China's A-share market,placarding have rarely been seen in the past for a long period of time.Therefore,they are not noticeable;the number of placard incidents in the Chinese stock market has increased significantly in recent years.It gradually entered the people's field of vision,and now China's A-share market has developed into a normal mode of placarding.The effect of placarding events on the stock price of placarded companies was known as the price effect in among scholars.Since large-scale placarding incidents occurred after 2015,the research on the price effect caused by placarding in China is still in its infancy.The early research on the price effect caused by placarding was often limited by the number of samples,and all placarding incidents were studied as a whole;the number of plagiarism events on the A-share market is now very considerable,and the feasibility of classifying placarding incidents is greatly increased.According to the nature and characteristics of the placarder,this paper classifies sponsored capital into five types:industrial capital,insurance capital,personal capital,funds,and other capitals and then study the price effect caused by different types of capital separately.The classification of brand-name capital in this paper is essentially a classification of "placarder",aiming to study the similarities and differences between the placard effects brought by different types of placarder.This article uses event study method to measure the placard effect with the abnormal return(AR)and cumulative abnormal return(CAR)as the main indicators and to use a single sample T-test to evaluate the significance of the results.The research results show that the various types of capital participating in the placarding of the A-share market can produce a positive stock price effect,but different types of capital have different strengths of the stock price effect on the event day,and the resulting stock price effect duration is also different.The maximal effect of arbitrage on the event day was the strongest,and the effect of the stock price effect caused by the escalation of insurance capital was the longest.In addition,the study also found that it is difficult for investors to obtain significant excess returns by investing in short-term investments after placarding.Therefore,small and medium-sized investors are not advised to blindly follow the stocks of splacarded companies.