An Empirical Study on the Effect of Stocks Rename of Listed Companies in China

DOI

10.2991/emcs-17.2017.291How to use a DOI?

Keywords

Stocks rename; Overreaction; Event study methodology; Excess earnings

Abstract

The rename of stocks have been sprung up since 1999 in China's stock market. As an atypical financial event, the rename of stocks can bring excess earnings to the market like other typical financial events. The article used samples which renamed the stocks on their own in a stock market during 2009 and 2015. We used the event study methodology and the model of excess earnings to figure out the excess earnings of our samples during the event window. In order to confirm whether the rename of stocks will bring significant effects to the yield rate, we also analyzed the process reaction of the market. The results suggested that the rename of stocks will bring significant excess earnings to the market during the event window. The information of stocks rename will give out before announcement date and the market will response in advance. The phenomenon of excess earnings will receive opposite correction after announcement date and it turns to negative. The rename of stocks will bring significant excess earnings to the market in the view of whole event window.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Qingzhou Wang
PY  - 2017/03
DA  - 2017/03
TI  - An Empirical Study on the Effect of Stocks Rename of Listed Companies in China
BT  - Proceedings of the 2017 7th International Conference on Education, Management, Computer and Society (EMCS 2017)
PB  - Atlantis Press
SP  - 1500
EP  - 1507
SN  - 2352-538X
UR  - https://doi.org/10.2991/emcs-17.2017.291
DO  - 10.2991/emcs-17.2017.291
ID  - Wang2017/03
ER  -