Research On The Effect Of Refuting Rumors Of Listed Companies' Clarification Announcements

In recent years,the strategic position of the capital market in China's economic operation has been continuously improved.The healthy development of the stock market is increasingly important for the services of industrial optimization and upgrading and economic structural transformation.However,due to the immature development of China's stock market,a stable and standardized operating environment has not yet been formed.The capital market is flooded with uncertain information,which has created conditions for fabrication and dissemination of rumors.Frequent market rumors disturb the information environment of the capital market,hinder the normal operation of the capital market,and weaken the function of the capital market to promote the rational allocation of funds.In order to deal with the effects of rumors,listed companies will issue clarification announcements to clarify rumors.The clarification announcement,as a special type of announcement of listed companies,has the effect of refuting rumors and mitigating the influence of rumors,and its release has always been closely watched by investors.The introduction of relevant rules and regulations has clarified and standardized the clarification announcement,but the quality of the clarification announcement issued by listed companies are still quite different.In addition,due to a combination of factors,clarification announcements often fail to pull back stock prices.Based on this,this article takes the listed companies that issued clarification announcements in China's A-share market from July 2014 to December 2018 as a sample,researches on the clarification effect of clarification announcements,and attempts to reveal the impact of clarification announcement quality on rumor clarification effects and clarify the underlying cause of the poor announcement effect.The research methods of this article mainly include event research method and multiple regression analysis.The paper uses the event research method to test the impact of clarification announcements on stock returns,and applies multiple regression analysis to study the influencing factors of clarification announcements.The article introduces the interaction terms of clarification announcement quality and clarification strategy,the interaction terms of announcement quality and company information transparency,the interaction terms of clarification announcement quality and institutional investor ratio,the interaction terms of clarification announcement quality and the nature of company ownership,the interaction terms of clarification announcement quality and investor sentiment to test moderating roles of moderators between the quality of announcements and the effectiveness of clarifications.The empirical results show that: affected by the "backfire effect" and "priority effect",the clarification announcement cannot eliminate the influence of rumors on the stock price and cannot make the stock price return to the level before the rumor,but can alleviate the impact of rumors on the stock price to a certain extent.The quality of the clarification announcement has a positive impact on the effect of clarifying rumors.The higher the quality of the clarification announcement,the better the clarification announcement effect.The clarification strategy(whether a suspension strategy is adopted)and investor sentiment have a positive regulating effect on the relationship between clarification announcement quality and rumor removal effect,while the company information transparency,institutional investor ratio and the nature of ownership has a negative regulating effect on the relationship between clarification announcement quality and rumor removal effect.Further studies find that the influence of the quality of clarification announcement on the effect of refuting rumors is asymmetric.There is a significant positive impact on the clarification of negative rumors,but is not on the clarification of favorable rumors.In the down market,the quality of clarification announcements has a significant positive effect on the effect of rumor removal.But in the rising market or steady market,there is not a significant positive impact on the clarification of negative rumors.