Effect of Policies of Civil-military Integration on the Long-term Stock Prices of Military Listed Enterprises

Based on the buy-and-hold approach of the long-term event analysis, this paper selects the national policies of civil-military integration as the research samples to study the effect of the policies promulgated in the period of in-depth development of civil-military integration on the long-term stock prices of 86 military listed enterprises affiliated to 11 major military industry groups. The empirical study shows that the promulgation of integration policies has a significant impact on the long-term stock prices of military listed enterprises. In order to further explore whether there are significant differences in the stock prices of the enterprises in different industries because of the promulgation of the policies, we have classified these enterprises into six industry categories: aviation, weapons, aerospace, electronics, nuclear industry and shipbuilding. It is found that these policies has made significant differences in the long-term stock prices of the enterprises in different industries.