Research On The Market Reaction Of Inquiry Letter And Its Influence On Corporate Behavior

During the development of the country’s capital market,the government vigorously promoted market-oriented reforms to improve market efficiency,and reform measures for regulatory methods were gradually implemented.The reform concept of "relaxing regulation and strengthening supervision" has also been implemented.The opening of the Shanghai Stock Exchange’s information disclosure through-train system in 2013 reflects this concept.The through-train system allows listed companies to directly disclose announcements and take responsibility for this.The exchange supervision method has shifted from pre-disclosure review to post-disclosure supervision.Therefore,since 2014,the inquiry letter has been valued as an important tool for implementing post-disclosure supervision.The inquiry letter stipulates the reply period,requiring the company to publish the letter and publish the reply result in a timely manner.This mandatory reply mechanism can reduce the risk of listed companies and capital The degree of information asymmetry among other market participants is also valued by investors in the market.This thesis takes Tianlong Group’s receipt of the inquiry letter from Shenzhen Stock Exchange as the research object,and calculates the cumulative excess return on the receipt and reply.The regulatory requirements and information content in the letter are quite different.Therefore,this thesis focuses on the inquiry letter.Differences in characteristics and focus on changes in corporate behavior resulting from receipt of enquiry letters.The structure of this thesis is roughly divided into six chapters.The first chapter is the introduction,expounding the background and significance of the research,reviewing the research on inquiry letters at home and abroad,conducting a literature review and summarizing innovations and deficiencies.The second chapter is an overview of the theory,and introduces the inquiry letter system and the event research method.The third chapter is the case introduction,which introduces the case company Tianlong Group and the process of receiving the inquiry letter.The fourth chapter is a case study,which performs a screening process for the enquiries received by Tianlong Group,and then calculates the market reaction one by one.The fifth chapter is the analysis of the influence of the inquiry letter on the company’s behavior,and analyzes the change of the behavior of Tianlong Group after receiving the inquiry letter.The sixth chapter is conclusions and suggestions,summarizing the market reaction laws and corporate behavior changes obtained by the previous analysis,and then put forward policy suggestions for the supervision of the inquiry letter of the stock exchange,and at the same time put forward certain suggestions for listed companies and investors.This thesis draws three conclusions.First,the supervision method of the exchange’s inquiry letter will have a significant impact on the market,and the market response to the inquiry letter is generally significant,indicating that the market recognizes the supervision method of the inquiry letter.Second,the stock exchange’s enquiry letter has a certain impact on the company’s behavior.After continuously receiving financial enquiry letters,the company’s financial management has improved,and at the same time,the company’s internal control defects have been exposed,which means that the enquiry letter has It has played a role in improving company behavior.Third,the inquiry letter has a good effect on the supervision of mergers and acquisitions,and through social pressure,the management is urged to pay attention to risks and improve information transparency.