The Impact of Large Shareholders' Lock-up Expiration on Stock Prices: An Empirical Study Based on the STAR Market

This study investigates the impact of large shareholders' lock-up expiration on stock prices in the STAR Market. Using an event study methodology, we analyze stock price dynamics surrounding lock-up expiration events. Our findings indicate that stock prices tend to decline prior to expiration due to investor anticipation of potential sell-offs but subsequently experience a recovery, suggesting that the market gradually absorbs the impact. Moreover, industry and firm size heterogeneity significantly influence market reactions. This study provides insights for investors managing risks around lock-up expiration events and contributes to a deeper understanding of market efficiency.