Empirical Research on the Split Share Reform's Effect on Stock Price in China

The key for the Split Share Reform in Chinese stock market is the ratio of payment of share, which is compensation to the current share stockholders. If the price changes comprehensively according to some certain rules that are independent of the ratio of the payment, the expectant effect of compensation brought by the payment of share will be warped. This paper studies the relationship between the price sensitivity and the ratio of payment and finds that the Split Share Reform doesn't have significant Effect on the fluctuation of stock price.