Research on the Superior Rate of Return Based on Event Study

In this paper, a detail statement about the procedures of Event Study has been made. Via the Event Study, the authors have researched whether there exists a superior rate of return in the pilots on the resume trading day after the sub-owned shares reform was declared by China´s Securities Regulatory Commission. In this paper, the authors have listed all the factors possibly influence the superior rate of return as explanatory variables, accordingly, the superior rate of return on the resume trading day as the explained variables. Using partial least square regression analysis, a final conclusion has been made. It shows that the superior rate of return is positively correlated with the proportion of dividend share in the consideration plan, and the net capital of previous year, and is negatively correlated with the scale of board of directors and the share holding proportions of the controlling shareholders.