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Empirical study on the impact of major asset restructuring on the price of sub‐new stocks in Chinese A‐shares

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  • Zhang Mingli
  • Zhang Yijie
  • Qin Simeng
  • Gong Juhong

Abstract

With the improvement of Chinese economic status, Chinese A‐share market has attracted more and more attention from international investors. Sub‐new stock is a general name for the companies which list less than a year, most companies of this category come from the China Growth Enterprise Market (GEM) and are high‐tech companies with high growth. To study the influence of major asset restructuring on the stock prices of different companies, this paper adopts the event study method to calculate the samples' abnormal return in a 20‐day window period, compares related party transactions and unrelated party transactions, as well as different payment methods for the restructuring. The analysis shows that the listed companies of Growth Enterprise Market can get higher excess returns, the sample of unrelated transaction obtains more abnormal income than the sample of related transaction. The research can provide a reference for local and international investors.

Suggested Citation

  • Zhang Mingli & Zhang Yijie & Qin Simeng & Gong Juhong, 2022. "Empirical study on the impact of major asset restructuring on the price of sub‐new stocks in Chinese A‐shares," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1461-1472, January.
    • Handle: RePEc:wly:ijfiec:v:27:y:2022:i:1:p:1461-1472
    DOI: 10.1002/ijfe.2225
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