The mechanism of price limit impacts on informed traders’ behavior. To find out what effects related to price limit, three hypotheses caused by price limit are analyzed. Comprehensive method of event study and compar...The mechanism of price limit impacts on informed traders’ behavior. To find out what effects related to price limit, three hypotheses caused by price limit are analyzed. Comprehensive method of event study and comparative grouping is used to test the performance of price limit in Chinese stock market. The result of test indicates that price limit policy impedes fulfillment of traders and delays the discovery of stock price so it should be abolished.展开更多
基金National Nature Science Foundation (04104007,60323043,60293061)
文摘The mechanism of price limit impacts on informed traders’ behavior. To find out what effects related to price limit, three hypotheses caused by price limit are analyzed. Comprehensive method of event study and comparative grouping is used to test the performance of price limit in Chinese stock market. The result of test indicates that price limit policy impedes fulfillment of traders and delays the discovery of stock price so it should be abolished.
