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Split share structure reform effect model and empirical analysis

Author

Listed:
  • REN Guangqian

    (Center for Studies of Corporate Governance, Nankai University, Tianjin 300071, China)

  • ZHAO Yuliang

    (Center for Studies of Corporate Governance, Nankai University, Tianjin 300071, China)

Abstract

Based on the sample of 939 Chinese listed companies in the 40 former reformed batches, this paper investigates the effect of Chinese split share structure reform and its impact factors. First, considering Chinese split share structure reform as an event, an effect model is set up by means of the event study method, which takes abnormal return rate as a basic indicator to measure the reform effect. Further, in order to look for the impact factors on the reform effect, the empirical comparing analysis for different batches, different trading posts and different boards are done. These results show that the reform has positive effects on Chinese stock market and increases value of the listed companies. There is higher transformable return rate in the reform batches which include more Chinese listed companies with high quality performances. The shareholders who are in Shenzhen Stock Exchange market get higher transformable return rate than the shareholders who are in Shanghai Stock Exchange market. SME board has higher transformable return rate than the main board.

Suggested Citation

  • REN Guangqian & ZHAO Yuliang, 2009. "Split share structure reform effect model and empirical analysis," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 4(3), pages 461-477, September.
    • Handle: RePEc:fec:journl:v:4:y:2009:i:3:p:461-477
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-009-0025-0
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    More about this item

    Keywords

    Chinese split share structure reform; event study method; abnormal return rate; effect model;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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