How does reserve ratio decreasing act on market: Empirical evidence from China

This paper tests whether macro monetary shock will influence stock market. Employing approaches of event study and abnormal returns regression, this paper finds that reserve ratio decreasing does lead to positive abnormal returns, but it works through different channels in each event. Further analyz...

Ausführliche Beschreibung

Gespeichert in:

Bibliographische Detailangaben
Veröffentlicht in:	Journal of applied finance and banking 2019-09, Vol.9 (5), p.15-25
1. Verfasser:	Wang, Yuxun
Format:	Artikel
Sprache:	eng
Schlagworte:	Abnormal returns Bank liquidity Cash flow forecasting Central banks Discount rates Economic models Economics Efficiency Efficient markets Hypotheses Inflation Investments Monetary policy Price increases Rates of return Securities markets Stock prices Studies
Online-Zugang:	Volltext
Tags:	Tag hinzufügen Keine Tags, Fügen Sie den ersten Tag hinzu!

Beschreibung
Zusammenfassung:	This paper tests whether macro monetary shock will influence stock market. Employing approaches of event study and abnormal returns regression, this paper finds that reserve ratio decreasing does lead to positive abnormal returns, but it works through different channels in each event. Further analyzing shows that characteristics of the stock market of China make the differences: market overreacts to unexpected shock and underreacts to expectable event.
ISSN:	1792-6580 1792-6599