The new “Nine National Policies” hold significant importance in building a coordinated capital market, better leveraging the functions of the capital market, and advancing the construction of a financially strong nation. By comparing the policy goals and implementation standards across various sectors, this paper identifies three core dimensions: dividend regulation, financial fraud regulation, and share reduction restrictions. Based on this, it constructs an OLS regression model, leverages independent variables that measure firm characteristics from the above three dimensions, and uses the cumulative abnormal returns around the release of the new “Nine National Policies” as the dependent variable for regression analysis.

The results show that the market responds more negatively to firms with insufficient dividends, higher financial fraud risks, and a higher likelihood of triggering share reduction restrictions. In terms of dividends, corporate investment opportunities and financing capabilities significantly affect investors’ dividend expectations, which in turn improves market reactions to firms with insufficient dividends. In terms of financial fraud, when the pressure, opportunity, and self-justification motives for financial fraud are lower, investor concerns about financial fraud risks are alleviated, leading to a reduction in negative market reactions. In terms of share reduction, effective internal and external supervision can suppress negative market reactions triggered by share reduction restrictions.

This paper makes three key contributions: First, it fills the research gap in the regulatory policy framework for the capital market and enriches the literature on regulatory policy effects. Second, using the new “Nine National Policies” as an experimental setting, it provides micro-level empirical evidence on the effectiveness of stringent regulatory implementation. Third, it offers valuable insights for the implementation of the new “Nine National Policies” and the dynamic optimization of supporting regulatory details.

This paper offers the following implications: First, it aids regulatory authorities in recognizing the market’ endorsement of more stringent regulation. Second, it assists firms in understanding the systematic requirements proposed in the new “Nine National Policies” and encourages them to move beyond the short-sighted mindset of regarding the capital market merely as a financing tool. Third, it enables investors to accurately understand the regulatory orientation of the new “Nine National Policies”.