An event study on Chinese stock market reaction to the issuance of the ÃÂbio-industry development planÃÂAuthor(s): Xuefeng He, Min He , Xiuxia Wang
This paper conducts an event study methodology to investigate how Chinese stock market responds to the issuance of the ÂBio-industry Development PlanÂ. In this paper, we examine 123 listed companies under the influence of bio-industry with an event window of twenty-day. The empirical results indicate a significantly positive relation between the announcement of the ÂBio-industry Development PlanÂ and the stock prices of these firms. Namely, the new plan increases both the companiesÂ value and shareholdersÂ wealth in a short period around the announcement date. Our paper not only highlights the new planÂs important guiding effect to bio-industry development, but enriches the existing related literature.