Mispricing, Company Growth and Major Shareholder Trading
Major shareholder trading becomes more and more prevalent after a series of institutional reforms in Chinese capital market. Through empirical analysis using the sample of major shareholder trading occurred from the second half of 2006 to the end of 2008 in secondary market, we find that the net purchasing ratio of the major shareholders is negatively correlated to the extent of mispricing, no matter the misprice is due to company features or industrious factors. We also find that major shareholder net purchase is positively related to the corporate intrinsic value. Our results suggest the major shareholders have superior information than ordinary investors, their participation in the market will make price converge to its intrinsic value, and make the prices more informative of the companys potential growth.
Mispricing Intrinsic value Growth Major shareholder trading
HAN Jingfang LIU Ruizhi
School of Economy and Management, Wuhan University of Science and Engineering, Wuhan,P.R.China 43007 School of Economy and Management, Wuhan University of Science and Engineering, Wuhan, P.R.China 4300
国际会议
The 5th International Conference on Product Innovation Management(第五届产品创新管理国际会议 ICPIM 2010)
武汉
英文
653-658
2010-07-10（万方平台首次上网日期，不代表论文的发表时间）