Wealth effect of announcement of incentive policy of energy: Evidence from China market

Xuefeng He, Lili Jiu, Shuangjiang Han

Research output: Chapter in Book or Report/Conference proceedingConference Proceedingpeer-review

Abstract

Energy management contract (EMC) is a new model of the saving energy project. This research provides evidence on the efficiency of China securities market with respect to incentive policy of energy. Specifically, our study uses an event study methodology to empirically examine China stock market reaction before, during, and after the announcement of incentive policy of "about accelerating the implementation of EMC advice" based on the listed companies in 2010 under the influence of EMC with a time window of 41 days. The results indicate that target companies experience significant positive abnormal returns and the price of stocks increase before and after the announcement day of EMC advice effect, and increase shareholders' wealth and the value of the company in a short period around the announcement date.

Original languageEnglish
Title of host publicationInformation Science and Management Engineering
PublisherWITPress
Pages2687-2693
Number of pages7
ISBN (Print)9781845648282
DOIs
Publication statusPublished - 2013
Externally publishedYes

Publication series

NameWIT Transactions on Information and Communication Technologies
Volume46 VOLUME 3
ISSN (Print)1743-3517

Keywords

  • Abnormal returns
  • Event study
  • Incentive policy of energy

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