The Emepirical Study On The Motivation And Market Effect Of Chinese Listed Companies’ Large Shareholder’s Increase And Decrease Holding Behavior

For the result of Chinese stock market is founded at the beginning of the systemdefects, Chinese scholars for the large shareholders’ behavior s research started late,until2005years after the equity division reform, there is a peak time of largeshareholder s decrease holding, again until2008the instruction opinion of release ofthe listed companies restricted stock share and the decision about changes of articlesixty-three of the measures for the management of listed company, again there is aclimax of stock increase holding, large shareholders, increase or decrease holdingbehavior then begin to get the attention of scholars and research, but overall, the relatedresearch is less, but the related content has great importance to regulate the behavior oflarge shareholder s increase or decrease holding, safeguard the interests of the masses ofinvestors, maintaining market stability and development.Chapter2of this article first summarizes the research of historical documents, theforeign research mainly about the insider behavior, and domestic research on thisproblem appears later, as you can see, the motivation of large shareholders stockincrease or decrease holding is complicated, the conclusions of the paper has not beenunified, and lack of contrastive analysis of the similarities and differences, at the sametime the increase or decrease holding behavior is closely related to stock movements onthe market, but the lack of detailed studies on the market effect and theoreticalexplanation in this field. Second, the third chapter around the trading behavior of largeshareholders, summarized the advantage of the large shareholder s market transactionbehavior, specific motives of market trading behavior and the timing of tradingbehavior.The fourth chapter starts from the empirical assumptions, this paper from sixaspects the valuations and earnings prospects, stock volatility risk, nature of theshareholders, equity situation, market index gains presented in conformity with thegeneral economic hypothesis, and around the six aspects included11explained variable,respectively, p/e ratio, price-book ratio, return on net assets and net cash flow per share,current assets and total assets ratio, asset-liability ratio, daily turnover, the virtualvariables of the nature of the shareholder, state-owned (or not), the virtual variables ofcompany shareholders (or not), equity concentration, the market index yield, thenaccording to the definition of sample data for the selection and statistics, large shareholder s increase or decrease holding s motivation research used multiple linearregression analysis, and test for common problems of linear regression analysis,according to the result of test again to adjust the weighted least squares regression, thearticle get the following conclusion: the analysis of the results of the same variables forincrease and decrease holding behavior is greatly different, the lack of variableexplanation, not significant for increase holding behavior are including state-owned (ornot) variables, and which is inverse proportion with large shareholders increase holdingincluding p/e ratio, asset-liability ratio, equity concentration, the market index, and thedirect proportion with large shareholders increase holding behavior are the net cash flowper share, the company shareholders will care more long-term benefit for the company,the shareholder then tend to increase the stock in the secondary market; The lack ofexplanation of the variables for decrease holding behavior including ownershipconcentration, suggests that the large shareholder will not decrease holding because oflarge shareholder’s holding ratio is too high, it will also consider to reduce its impact oncontrol, the factors are inversely proportional with the ratio of large shareholdersdecrease holding including return on net assets, net cash flow per share, which isdirectly proportional with the ratio of large shareholder s decrease holding includingprice-book ratio, turnover rate, and state-owned, company shareholders will not tend todecrease the holding of the stock of the company; And from the point of impact, morelarge shareholders behavior is based on earnings prospects, accumulated earnings,volatility risk, nature of shareholders, stock market factors, and the valuations, equity isless affected.Chapter v of this article is about market effect of large shareholder s behavior, theempirical research using event study method, take the20trading days before and afterthe announcement as the window period, calculated the window period s average excessstock returns and the cumulative average excess returns, and the cumulative averageexcess returns did the t test of significantly different from zero, then the overall sample,sample classification of market trends, the nature of the shareholders, the ranking ofshareholders, plate classification, the percentage of increase and decrease holdingclassification samples are analyzed and compared, the conclusion including the marketeffect is exist for large shareholder s increase and decrease holding behavior, and thereis a prior change of the cumulative average excess return for the increase or decreaseholding behaviors, so the announcement information has leaked in advance, under the increase behavior, the market is in decline trend, the state-owned shareholders increaseholding behaviors, the first large shareholder s behaviors with the greater market effect,the market effect of the main board and second board is the same during the short period,but from the longer period, the mainboard market effect of stock is better, and theproportion of increase holding and the cumulative average excess return have nosignificant correlation; and for the decrease holding behaviors, under the shock trend ofthe stock market, the negative effect of market is the biggest, the non-state-ownedshareholders, the non-first large shareholders holdings behavior has more negativeeffect of market in the short term, but in a longer window period, state-owned, the firstlarge shareholders has more negative market effect, under the market of small andmedium-sized, negative effect is bigger than the main board, but the negativeconductibility is limited, the proportion of decrease holding and cumulative averageexcess return are not significantly correlated.Last chapter made a conclusion of the full article, according to the market investors,listed companies and market management, the article also puts forward related policysuggestions.