Empirica] Research On The Major Shareholders Holding Motivation And Wealth Effect

The major shareholders of listed companies the problem is an important researchtopic of Corporate Finance. Domestic scholars largest shareholder is mainlyconcentrated in the major shareholders through related party transactions and other actsagainst the interests of small shareholders, the lack of shareholder trading behavior onthe secondary market.With our depth of split share structure reform, increasing theproportion of the outstanding shares of non-tradable shares into tradable shares in thesecondary market, the largest shareholder in the secondary market transactions premisecondition. Largest shareholder, as the most important corporate investors, they can betimely and accurate understanding of the company’s internal information, which is thelargest shareholder outside traders can not be mentioned in the same breath, the largestshareholder of transactions within the company by virtue of this advantage, its purposeis to maximize the shareholders’ return. How much of the excess return often dependson the degree of importance of the internal information.With the advent of the circulation time, the interests of the orientation of thenon-tradable shareholders and tradable shareholders gradual convergence of interestorientation, the the floating stock price in the secondary market have a great impact onthe value of the stock, but also directly affect the holders of the shares of shareholdersinterests. So, the major shareholders into the secondary market, a significant impact onthe value of the listed companies. During the split share structure reform, in order to dothe balance of the market, the government increased the width of the regulatory levelsstimulated the enthusiasm of the shareholders’ holdings, holdings of major shareholdersto become active in this policy context. Holdings of its own shares in the company since2012to reach as many as hundreds of major shareholders has become the hot issue ofthe behavior of large shareholders in the context of the current secondary market study.This will be the theory of the basis of the full study large shareholders to increaseits stake, the wealth effect and impact factors for in-depth analysis of the secondarymarket, the largest shareholder behavior pad foundation. To fully understand thecharacteristics of the holdings of major shareholders, and is beneficial to the futuredevelopment of the securities market. Is also a useful reference for the operation of theinvestors, the management and major shareholders in the secondary market. There are alarge number of studies have shown that asymmetric information and signaling theory,theory of insider trading, market timing hypothesis theory is the main purpose of the holdings of shares of the major shareholders of listed companies in China, and have asignificant impact. Very significant impact on the company’s share price on the marketreaction to the holdings of major shareholders, the maximum excess cumulative yield inthe window of the announcement the day before and after a period of time, andincreases as the largest shareholder holdings proportion increases positive shareholderwealth effect.Selected empirical study year2012to seventy released announcement of majorshareholders of listed companies as the object of study, information asymmetry andsignal transmission theory, market timing hypothesis theory, insider trading theory toexplain the major shareholders increase held the purpose of use in the analysis of theauthentication method is a multiple linear regression model. Largest shareholder’sholdings of behavior is bound to have a role in promoting the company’s stock price.Our research holdings of major shareholders behavior of the price impact of literaturefew With the constant improvement of laws and regulations, however, limit the largestshareholder holdings in the secondary market conditions are gradually reduce holdingsof major shareholders behavior The study has become more universal and more researchvalue. Research paper selected objects in a relatively stable market environment, theholdings of major shareholders behavior in the context of broad support for the policyof national laws and regulations, and examine the holdings of major shareholders for thecompany’s share price in the wider environment. Paper selected sample period in amore stable market environment. Therefore, the holdings of major shareholdersbehavior of the sample in the sample small, and the motives of the different sectors ofthe holdings of major shareholders are not the same, in this study did not distinguish.Future research can be further from here.The article includes five parts: the first part is the introduction. In the introductionsection introduces the research purpose and meaning, writing ideas and researchmethods; second part is a review of the literature, this part of the review of the literatureon the impact of motivation and equity structure of the company wealth introduces theholdings of major shareholders. The third part analyzes the theory of the majorshareholders of listed companies in China to increase its stake Overview, respectively,to explain the theoretical basis of the holdings of major shareholders shares motivationlargest shareholder to increase its stake, the largest shareholder to increase its stake inshareholder wealth impact theory. And raised in this article the following assumptions:Assumption1: The proportion of the company’s largest shareholder holdings higher the excess, the higher the cumulative abnormal returns; Assumption2: The second to thetenth largest shareholders of the company holdings higher the proportion of excesscumulative abnormal returns rate. The fourth part is the empirical analysis of the wealtheffect of the major shareholders of listed companies in China to increase its stake; fifthpart of the conclusion, the research for this article, the recommendations pointed out thelack of research.