Paper Title
Asymmetric Effect Of Stock Market Price Limits On Upward And Downward Price Movements

Abstract
Event studies were applied to study the effectiveness of price limits in China�s stock market. Asymmetric effect of price limits is documented for upward and downward price movements. There is prevailing evidence of underreaction to news in the case of upward price movements and the upper limits have worsened it by further delaying the price discovery process. On the other hand, there is serious overreaction to news in the case of downward price movements and the lower limits have desirably mitigated overreactions. Index Terms- abnormal returns, price discovery, overreaction, underreaction