The effects of trading suspensions in China

Qing He (), Jingyun Gan, Shuwan Wang and Terence Tai Leung Chong

The North American Journal of Economics and Finance, 2019, vol. 50, issue C

Abstract: We study the effects of both mandatory and voluntary trading suspensions on stock prices, volatility and trading volume in China’s stock market. It is found that both voluntary and mandatory suspensions generate negative abnormal returns. Trading volume and volatility rise significantly in the post-suspension period. Our results suggest that suspensions are not effective in calming down investors in China. Ownership structure and duration of suspension explain the ineffectiveness of suspensions.

Keywords: Voluntary suspensions; Mandatory suspensions; Efficiency (search for similar items in EconPapers)
JEL-codes: G10 G14 G18 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: The Effects of Trading Suspensions in China (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:50:y:2019:i:c:s106294081830055x

DOI: 10.1016/j.najef.2019.100985

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