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Stock Prices in a Speculative Market : The Chinese Split-Share Reform NOTA DI LAVORO 15
| Content Provider | Semantic Scholar |
|---|---|
| Author | Nota, Di Mattei, Eni Enrico Panunzi, Fausto |
| Copyright Year | 2009 |
| Abstract | In 2005-2006 China reformed its stock market by eli minating non-tradable shares. The regulator set general guidelines and then assigned responsibility for implementation to each company. We derive relations that should have been followed by the pri ces of stocks and exploit a company-level data set to compare the actual and the theoretical price reactions. We find evidence for abnormal returns both before the beginning of the reform and during the reform. Cross-sectionally, abnormal returns are associated mainly with turnover and compensatio n. This shows that in a speculative market, investors do not properly react to unambiguous corp orate actions. JEL classification: G14, N25. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.econstor.eu/bitstream/10419/53180/1/644918225.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
