Time: 15:00, October 24, 2018 (Wednesday)
Location: B401 Newhuadu Business School
Sharer: Dr. Hui Lin
Subject: empirical study on the phenomenon of "framing effect" in China's capital market
Abstract: based on the special situation of no. 18 document issued by the organization department of the CPC central committee in October 2013, Dr. Hui Lin empirically tested the resignation event of the independent director of an official caused by no. 18 document and the market reaction caused by different expressions of reasons for resignation. The study shows that the resignation of the sole director of an official triggered by the same document no. 18 has a significant negative market reaction to the sample companies that disclose the reasons for resignation as "personal reasons/work reasons". However, there was no obvious response from the market to the sample company disclosed as "resignation in accordance with article 18". The market's different responses to "the same event and different disclosure" indicate that investors have irrational cognitive bias in the decision-making process, and there is a phenomenon of "frame effect" in the capital market. "China's capital markets: an empirical study of" framing effect "phenomenon, based on the department of no. 18 natural experiment" is domestic first based on the empirical evidence study "framing effect" of the empirical literature, makes up for the existing framework effect research mainly USES the experimental method and questionnaire survey, the deficiency of the "framing" phenomenon, also for the future study provides analysis and inspection methods for reference; At the same time, for the current Chinese capital market, also has important policy significance.