Market reaction to the announcement of CPC cultural development guideline

This paper investigates how stock prices respond to the announcements of cultural development guideline by using a standard event study methodology. Examining 36 Chinese listed companies in cultural and media industry from September 20^th, 2011 to November 8^th, 2011. To measure the economic relevance of accounting for cultural development guideline adopted by CPC, we conduct study with market model to explore the abnormal return including 31 event days. The result indicates that the positive abnormal return occurred in Chinese culture and media industry.