Market Reaction And Spillover Effects Of The Double Reduction Policy In The Education And Training Industr

In recent years,in order to reduce the pressure on primary and secondary school students,all localities have carried out various burden reduction work.However,at this stage,the problem of large burden on primary and secondary school students still exists.Primary and secondary school students are facing the dual pressure inside and outside the school.In this context,on May 21,2021,the Chinese government held a meeting and adopted the opinions on further reducing the homework burden and after-school training burden of students in the stage of compulsory education.On July 24,2021,Chinese government issued the opinions on further reducing the homework burden and after-school training burden of students in the stage of compulsory education.However,no paper has systematically explored the abnormal return of teaching and training industry due to the double reduction policy with the event research method,and no paper has explored the spillover effect of the double reduction policy on the stock price of other industries.Under this background,this paper studies the impact of the double reduction policy on the stock prices of Chinese A-shares and American Chinese concept stock.This paper computes the abnormal returns and cumulative abnormal returns of China’s A-shares and American Chinese concept stock after the adoption of the double reduction policy and the official issuance,and makes a classification study.The first classification is by business scope,and the second is by the exchange market.The event research is carried out by classifying the nature of non-education service industry enterprises into two categories,and the significance test and result interpretation are carried out.This paper has 7 conclusions:(1)The double reduction policy has brought negative market reactions to the education service industry of Chinese A-shares and American Chinese concept stock.(2)The market reaction of the double reduction policy through deliberation is less than that officially issued.(3)The impact of the double reduction policy on enterprises involved in extracurricular teaching is greater than that of other enterprises in the education service industry.(4)The double reduction policy has had a sustained contagion effect on Chinese concept stock.(5)The double reduction policy had a short-term contagion effect on Chinese A-shares,but it did not have a sustained contagion effect.(6)The spillover effect of the double reduction policy on Chinese concept stock is greater than that on Chinese A-shares.(7)The spillover effects of the double reduction policy on different industries are different.This paper believes that extracurricular training enterprises can corporate with schools and get involved in business transformation;government departments should consider many aspects before the promulgation of the policy,seek various channels to communicate with investors in overseas markets,and improve Chinese capital market system;overseas investors should view the Chinese government’s regulatory policies with a positive attitude.