Advances in Management and Applied Economics

An Empirical Study on the Premium of Low-Priced Stocks in China's A-Share Market

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  • Abstract

     

    This paper selects the data of China's A-shares from 2001 to 2020 to study the premium effect of low-cost stocks in China's A-share market from different sectors using multiple regression analysis. The research results show that there is a premium effect of low-cost stocks in each sector of the A-share market. The increase in the shareholding ratio of institutional investors and the attention of analysts can reduce the premium effect of low-cost stocks.


    JEL classification numbers: F832.5

    Keywords: Low-priced stocks, Premium effect, Excess return, Financial anomalies.