Split share structure reform effect model and empirical analysis

Guangqian Ren () and Yuliang Zhao ()
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Guangqian Ren: Center for Studies of Corporate Governance, Nankai University, Tianjin 300071, China
Yuliang Zhao: Center for Studies of Corporate Governance, Nankai University, Tianjin 300071, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2009, vol. 4, issue 3, 461-477

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.

Keywords: Chinese split share structure reform; event study method; abnormal return rate; effect model (search for similar items in EconPapers)
JEL-codes: G18 L22 (search for similar items in EconPapers)
Date: 2009
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