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An Empirical Study on the Premium of Low-Priced Stocks in China's A-Share Market

Author

Listed:
  • Huizheng Liu
  • Xinyao Han
  • Jiaqi Zhou
  • Yidan Ma
  • Hang Yin

Abstract

This paper selects the data of China's A-shares from 2001 to 2020 to study the premium effect of low-cost stocks in China's A-share market from different sectors using multiple regression analysis. The research results show that there is a premium effect of low-cost stocks in each sector of the A-share market. The increase in the shareholding ratio of institutional investors and the attention of analysts can reduce the premium effect of low-cost stocks. JEL classification numbers: F832.5

Suggested Citation

  • Huizheng Liu & Xinyao Han & Jiaqi Zhou & Yidan Ma & Hang Yin, 2023. "An Empirical Study on the Premium of Low-Priced Stocks in China's A-Share Market," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-1.
    • Handle: RePEc:spt:admaec:v:13:y:2023:i:6:f:13_6_1
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    References listed on IDEAS

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    3. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    4. Pinches, George E. & Simon, Gary M., 1972. "An Analysis of Portfolio Accumulation Strategies Employing Low-Priced Common Stocks," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 7(3), pages 1773-1796, June.
    5. Christie, Andrew A., 1982. "The stochastic behavior of common stock variances : Value, leverage and interest rate effects," Journal of Financial Economics, Elsevier, vol. 10(4), pages 407-432, December.
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