The Short-term Effect Of Industrial Policy On The Stock Price Of Listed Company In Pharmaceutical Industry

The pharmaceutical industry is closely related to social life and has being one pillar of the national economy,the market has broad prospects.However,the development of the pharmaceutical industry relies heavily on the polices of the government.To promote the development of the pharmaceutical industry,the government also formulated and promulgated a series of "13th Five-year Development Plan” including "Guideline for the Development of Pharmaceutical Industry" and relevant sub-sectors Planning documents.Meanwhile,with the gradual improvement of China's capital market,the role of capital markets in the national economy has become more important,the interaction between capital markets and the real economy has also been gradually strengthened.Studying the performance of the capital markets in the pharmaceutical industry is of great significance to promoting the development of the industry.This paper mainly studies the influence of the government's policies of pharmaceutical industry on the capital market value of the listed companies in the industry,analyzes the effect and mechanism of the issuance of industrial policies on the short-term volatility of the listed company's stock returns,and selects some industrial policies as an incident,use the data of listed companies to conduct an empirical study of incident research methods,In the empirical research of the application of event research method,this article respectively uses the general steps of event research and regression method to obtain the abnormal return rate of the listed company's stock for comparative analysis to strengthen the reliability of the empirical results.Through empirical research,it is found that the release of relevant industry policies indeed has a significant impact on the short-term stock returns of the listed companies in the pharmaceutical industry.On the basis of confirming the significant impact of events on the short-term volatility of stock returns,this paper establishes a multiple linear regression model of the factors affecting the abnormal returns of stock to test the reasons for the discrepancy between the volatility of stock returns of the sample companies.In order to establish the model,the paper chooses four indicators from the corporate level,including the total assets turnover rate reflecting the company's operational capacity,the total assets return rate reflecting the profitability of the company,the operating income growth rate reflecting the company's growth ability and the liquidity reflecting the company's stock liquidity,and the net assets is used as a control variable.the empirical results show that the total asset turnover,total return on assets and turnover rates make difference.The total return on assets(ROA)had the greatest impact on the abnormal return rate,the second was the total asset turnover rate,while The effect of the growth rate of the business revenue reflecting the growth capacity of the company and the net assets of the company is not significant.The paper analyzes the results and puts forward corresponding suggestions.