Market Profitability Factors Exploration after the Stock Holding Event of Listed Companies Executives-Evidence from China's Stock Market

Abstract

There are fewer detailed studies and empirical research on the related profitability factors for executives increase shareholding event of listed companies in China. We find out the market has a significant positive average cumulative abnormal returns after the announcement of listed companies' executive increase shareholding. Multivariate regression model was used to analyze and test the profitability factors which effect the abnormal returns of the executives increase shareholding event. In this paper we find the lower valuation of companies, smaller market capitalization, lower ownership concentration, and lower stock prices volatility before the event are the significant four profitability factors which can help the investors obtain above-average income levels. PU - ATLANTIS PRESS PI - PARIS PA - 29 AVENUE LAVMIERE, PARIS, 75019, FRANCE