Non-tradable Share Reform and Tradable Shareholders＇ Wealth： An Event Study Analysis

作     者：Licheng Feng Weihe Xu 

作者机构：University of International Business and Economics Beijing 100029 China 

出 版 物：《Chinese Business Review》 (中国经济评论（英文版）)

年 卷 期：2006年第5卷第7期

页      面：45-60页

学科分类：02[经济学] 0201[经济学-理论经济学] 020101[经济学-政治经济学] 

主　　题：abnormal return non-tradable share reform event study China 

摘      要：On April 29, 2005, the reform of non-tradable shares was started. 46 companies were selected as the first and second batches of non-tradable share pilot reform, and among them 45 pilot companies finished their non-tradable share reform. This study examines the abnormal stock returns of the 45 pilot companies finishing their non-tradable share reform to determine whether tradable shareholders gain profits from this non-tradable share reform. By employing event study analysis, we find that tradable shareholders do gain profits from the non-tradable share reform. The average abnormal return of the 45 pilot companies was 10.62% on the resumption trading day after they finished their non-tradable share reform, which was statistically significant. We also find that the average abnormal return of high-compensation package group is significantly higher than that of low-compensation package group.