| Thirty years of reform and opening up,the rapid development of Chinese economy,people's material wealth has also been greatly improved,China stock market,after a short period of thirty years,has become one of the most important global capital market.But before the launch of the margin business,the "unilateral market" of the Chinese market has seriously affected the investors' rational allocation of investment resources.In order to change the malpractice of the stock market in China,the margin trading mechanism was launched in March 2010,which is an important process for China's securities market to mature.In February 2013,the exchange margin business was officially launched after the transfer of financing,which marks the trend of the margin trading mechanism to the Convention.With the rapid development of financing margin,the impact on China's stock market has attracted more and more attention.This paper,based on the pilot start of China's financing margin,mainly examines the possible negative effects of margin trading-insider trading:First,it describes the development of margin trading.It shows the development of margin trading from all aspects,and summarizes and studies the theory and literature at home and abroad,so as to provide solid theoretical support for this research.The second part,the theoretical review and analysis.This part mainly introducesthe related concepts of margin trading and insider trading,analyzes the relationship between the two,and puts forward the corresponding assumptions.The third part,the empirical analysis of the impact of margin trading on insider trading.This paper is mainly about the A share market in China.It selects the data from 2011-2016 as a sample.Taking the annual report date as the event day,we use event study method to do the empirical analysis,and test the robustness of the empirical results.The fourth part,policies and suggestions.Firstly,the importance of information for an effective capital market is self-evident.Second,the establishment of a regular reporting system for informed insiders on inside information The implementation of the filing system shall be implemented for those who may be involved in insider trading.Third,we must formulate laws related to insider trading and strengthen legal supervision.Fourth,strengthen the establishment of a credit system and fundamentally solve the problems existing in the stock market.China should learn from the advanced experience of foreign countries,based on China's actual conditions,gradually establish a credit system that is compatible with China's stock market,and record the behavior of the public in the stock market into the personal credit system.Fifth,make full use of various social resources to jointly combat insider trading.We must give full play to the function of public opinion supervision in the media and use it as a powerful weapon to monitor illegal activities such as insider trading.In addition,public supervision is also a powerful measure to guard against this behavior.Encourage the public to jointly combat insider trading and maintain the order of the stock market.The main point of this paper is that our current research on margin trading is mainly focused on the implementation effect of margin trading,and few literatures discuss the possible negative effects of this mechanism in China's current market environment.Based on this perspective,this paper empirically examines the impact of margin trading on insider trading in the market,and provides new empirical evidence for the debate on the economic consequences of margin trading.In addition,thispaper also investigates the changes in insider trading behavior that may be triggered by the change of company size and proportion of institutional ownership,and enriches the related research on the influencing factors of insider trading.Through the above empirical research,the suggestions proposed in this paper are more targeted. |
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