Empirical research on the market reaction of equity incentives of China's listed companies
- Resource Type
- Conference
- Authors
- Jian-gang, Zhang; Hong, Kang; Zi-jun, Wang
- Source
- 2010 International Conference on Management Science & Engineering 17th Annual Conference Proceedings Management Science and Engineering (ICMSE), 2010 International Conference on. :1303-1308 Nov, 2010
- Subject
- General Topics for Engineers
Engineering Profession
Companies
IEEE news
Stock markets
Share prices
Security
Estimation
Portfolios
equity incentive
control rights
event study
market reaction
- Language
- ISSN
- 2155-1847
2155-1855
This paper tests the market reaction of equity incentives of listed companies in China by the means of event study since 2006, and compares the reaction intensity of different control rights types of listed companies. The results find that a significant positive market reaction after the disclosure. The reaction intensity of state-owned listed companies is greater than that of companies listed in the SME board. This fact shows that the investors in China more focus on the event itself of equity-based incentives of the listed companies, so that they ignore the relationship between company control rights and the effect of equity-based incentive. The theory of investors' limited attention can be used to explain the fact.