The Impact of The Government's Policy on The Stock Performance of The Chinese Game Industry

Abstract

Over the past few decades, the video game industry has increased from a small market to a vast industry. As the industry evolves, business models are growing to accommodate emerging technologies and innovations. There is a lot of research on the classification of the video game industry. However, the concept of classification in the video game industry in some countries is still vague and ambiguous. In this study, the paper introduces and classifies the classification system in the video game industry through the research paradigm based on the literature. The release of national policies has a negative impact on the existing game system. In the short term, there will be a negative shock that makes the performance of the stock will decline. For a robust check consider the return on asset, leverage, size of the firm, and sales growth as the control variable, found that the result doesn’t affect by these variables, and the coefficient is not high. So, the main influence factor is the restrain policy. This study reminds China's domestic game industry that the development and system of the game industry are still not perfect, and gives the classification direction of the completion and development.