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.

Chuyu Zhang. The Impact of Large Shareholders' Lock-up Expiration on Stock Prices: An Empirical Study Based on the STAR Market. Academic Journal of Business & Management(2025), Vol. 7, Issue 3: 100-104. https://doi.org/10.25236/AJBM.2025.070315.

[1] Brown, S. J., & Warner, J. B. (1985). Using daily stock returns: The case of event studies. Journal of Financial Economics, 14(1), 3-31. 

[2] Campbell, J. Y., Lo, A. W., & MacKinlay, A. C. (1997). The econometrics of financial markets. Princeton University Press.

[3] Chen, Z., & Wang, J. (2020). Investor behavior in China's stock markets: An overview. China Economic Review, 62, 101-126. 

[4] Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. (1969). The adjustment of stock prices to new information. International Economic Review, 10(1), 1-21.

[5] Liu, Q., & Tian, G. G. (2022). Regulatory constraints and market reactions: Evidence from China's stock markets. Emerging Markets Review, 50, 100-115. 

[6] MacKinlay, A. C. (1997). Event studies in economics and finance. Journal of Economic Literature, 35(1), 13-39.

[7] Qian, Y., Ritter, J. R., & Shao, X. (2023). Initial Public Offerings Chinese Style. Journal of Financial and Quantitative Analysis.