IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v43y2007i2p33-62.html
   My bibliography  Save this article

Has the Reform of Nontradable Shares Raised Prices?: An Event-Study Analysis

Author

Listed:
  • Licheng Feng
  • Weihe Xu

Abstract

This study examines the abnormal stock returns of pilot companies to determine if investors believed that reform of nontradable shares, which began on April 29, 2005, would lead to higher stock prices. Employing event-study analysis, we find that the pilot companies have positive significant abnormal returns. The average abnormal return of the first batch is higher than that of the second batch, the average abnormal return on the Shenzhen Stock Exchange is higher than that of the Shanghai Stock Exchange, the average abnormal return on the Small and medium Enterprise board is higher than that of the main board, and companies with high-compensation packages have higher average abnormal returns than do companies with low-compensation packages. Our results suggest that investors generally viewed nontradable share reform as positive news.

Suggested Citation

  • Licheng Feng & Weihe Xu, 2007. "Has the Reform of Nontradable Shares Raised Prices?: An Event-Study Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 43(2), pages 33-62, April.
    • Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:33-62
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B3Q8J62023126V6U
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:33-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.