An Impact Analysis Of Listed Companies Announcements To Stock Markets' Individual Investors

The announcement of a listed company is one of the most direct channels for investors to understand the operating status of listed companies.As an army of stock market transactions in China,individual investors have an absolute advantage in the number of accounts opened,but their sources of information are relatively limited.Therefore,individual investors may use the announcement of listed companies as a basis for their stock trading operations.The previous literature indicates that after the announcement of the listed company announcement,the company's relevant business decisions and performance will change accordingly,and these changes can become one of the references for individual investors' stock trading operations.Then,what impact does the announcement of listed companies have on the direction of individual investors' stock trading and the cumulative excess returns.Based on the above background,in order to study the influence of the announcement of listed companies on the trading direction of stock trading and the cumulative excess return rate of individual investors in China's stock market,this paper uses the equity incentives issued by Oriental Wealth Network in China's stock market A-shares from 2007 to 2012.The announcement of the listed company is the research object,and combined with the random transaction of a stock exchange in 2007-2012,which is randomly selected from a stock exchange,the Probit model method and the event-study method are used.In the total sample period and the bull and bear market,the impact of listed company announcements on the stock trading direction and cumulative excess return rate of individual investors in China's stock market.This paper draws the following conclusions:The test results of the Probit model method show that the 13 types of listed companies selected in this paper only have the announcements of equity incentive announcement,executive resignation announcement,additional issuance announcement,fund investment announcement,disciplinary penalty announcement,and asset restructuring announcement.On the day,the buy-in of individual investors has a significant impact on the 10% confidence interval.Further,this article is based on the practice of subdividing various types of announcements by Oriental Wealth Network,such as the resignation announcement of executives into the method of passive resignation of executives and the announcement of voluntary resignation,and announced the 13 seeds of the above-mentioned 6 types of announcements.A second Probit model test to analyze which kind of announcement in such an announcement has a significant impact on the individual investor's stock buy ratio.Then,the second Probit model test results of this paper indicate that only the executives' passive resignation announcement,merger and acquisition announcement,private placementannouncement,fund use change announcement,and enterprise rectification announcement are included in the 13 seed announcements.There is a significant impact on the stock buy ratio of individual investors.Next,this article takes these five kinds of announcements as the research object,and uses Event-Study to analyze each of the five trading days before and after the announcement,that is,the short-term window [-5,5].How does the sample period and the bull and bear market affect the stock trading direction and the cumulative excess return rate of individual investors in China's stock market.The results of the Event-Study test show that: First of all,the impact of these five types of announcements on the behavior of individual investors' stock trading operations and their excess returns has asymmetry between the bull market and the bear market.The main performances are as follows:During the period of [-5,0],the operation of individual investors to buy the corresponding stocks of such announcements can only bring about the positive excess return rate of the [-5,-1] period.On the announcement day,a negative excess return rate is obtained;then,during [1,4],the cumulative excess return rate obtained by the individual investor for selling the corresponding stock of the announcement is negative.In the bull market and the bear market,individual investors will buy and net sell the stock corresponding to the announcement in the period of [-5,-1] and [0,4],but the bull market can be used throughout the window.[-5,5] obtained a positive cumulative excess return rate,while the bear market harvested the cumulative excess return rate for the entire window period.During the period of [-3,0],the operation of individual investors to buy the corresponding stocks of such announcements can only obtain a positive cumulative excess return rate at [-1,0],at [1,4].During this period,the individual seller's net selling operation can obtain a positive cumulative excess return rate during this time.The bull market,which operates in the same period as the total sample period,can obtain a positive cumulative excess return rate for individual investors during [-3,-1],and a negative accumulation during [0,4].Excess rate of return.In the bear market,the operation of individual investors to sell the corresponding stocks of such announcements throughout the window period can only bring positive cumulative excess returns on [-4,-3],and bring in [-2,4] It is a negative cumulative excess return.In the total sample period and the bear market,the fund use change announcement selects the net purchase of the stock corresponding to the announcement during the period[-5,-1],but this operation brings positive to the investors during the total sample period.The cumulative excess return rate is positive in the bear market except for the cumulative excess returns at T=-5 and T=-1,which is a positive cumulative excess return rate at [-4,-2];at [0,4The operation of selling the corresponding stocks of this type of announcement during this period,the individual investors who brought the total sample period and the bear market are negative cumulative excess returns.In the bull market,the operation of the individual investor to buy the stock corresponding to the announcement in the period [-3,-1] brings a positive cumulative excess return rate to the individual investor,while [-5,-4] The cumulative excess return rate from the net selling of stocks in the two periods [0,4] is negative.During the period of [-5,0],the cumulative excess of the individual investors who bought the corresponding stocks of such announcements to individual investors did not have the same regularity,but also at T=-3.And [-1,0] get positive cumulative excess return rate;during [1,4],individual investors can only sell the corresponding stocks of such announcements only during [1,3] Get a positive cumulative excess return.In the bull market,individual investors' net selling of stocks throughout the window period has a positive cumulative excess return.On the contrary,in the bear market,individual investors are buying or selling the corresponding stocks of the announcement,and the cumulative excess return rate is negative.In the total sample period of the rectification announcement and the bear market,during the period of [-5,-1] and [0,4],the stock operations of individual investors are net purchases and net sales of stocks corresponding to such announcements,respectively.However,it is able to obtain a positive cumulative excess return rate during the period of [-4,3] of the total sample period,while the bear market is a negative cumulative excess return rate for the entire window period.In a bull market,individual investors are net buy operations on [-3,4] and can get positive cumulative excess returns during this time.Secondly,individual investors generally have the ability to “pre-predict” the passive resignation of executives and the announcement of corporate mergers and acquisitions and announcements of rectification of companies in the bull market.This is reflected in the executive resignation announcement and the merger and acquisition announcement.In the 5trading days before the announcement,the individual investors began to invest in the stock of the target company,and there was a net buying operation,and the behavior continued until the announcement.After all,the announcement of these two announcements from the initial planning of the company to the final event is a process of continuous development,so the individual investors have already “predicted” such announcements before the final determination.In the bull market,the individual investors are from the third trading day before the announcement of the rectification announcement to the announcement date,and the stable net purchase of the stock corresponding to the announcement;since the listed company has been issued from the investigation to the release of the corresponding penalty notice For a long time,the stock price of such companies may have reacted when they were filed.Beforethe rectification plan is finalized,individual investors will enter the market with a "low buy" mentality.Finally,the stock trading operation of individual investors in China during the announcement period is not mature.This is reflected in the first trading day after the announcement(except for the bull market rectification announcement).Individual investors choose to clear the clearance and leave the market.This may be It is because individual investors lack detailed understanding and analysis of the announcement information,and choose the most “conservative” trading operation to avoid the impact of the event.In particular,the negative announcement effect of the consistent sell-off of stocks in the bear market has intensified the downward pressure on stock prices,which has led individual investors to obtain negative cumulative excess returns.This may be due to the sluggish investment sentiment in the bear market and the announcement of the individual Investors have a "excessive panic" mentality and choose to reduce their positions in large quantities to evacuate the market;but the individual investor's operation method of consistent clearance and exit does not bring a significant positive excess return rate,but instead gains a negative Cumulative excess return.In view of the above analysis,the article puts forward some suggestions from the supervision part of the capital market and the future stock trading operation of individual investors,and summarizes the shortcomings,and puts forward the research prospect.