A Comparative Study Of Large Shareholders And Executives On Share-increasing Behaviors

With the deve lopme nt of Chinese securities market, the shares increasingbehaviors of the listed companies’insiders including large shareholders andexecutives ha ve become the focus of many experts and scholars’ research in recentyears.But so far, the experts and scholars’ researches both in the domestic and fore ignmarkets are relatively rare, the ana lysis Angles ofte n only focus on a certain leve l, andthese researches are a lso lack of deep internal mechanism’s think ing about increasingbehaviors The paper focues on the shares increasing behaviors of ma ny listedcompanies’ insiders including large shareholders and executives from1September2008to31December2010.According to the market effect and increas ing motivationof shares increasing behaviors, the paper has conducted the real dia gnos is researchinc lud ing the transaction motive, financ ia l performa nce, big shareho lders equitycontro l ability aspects, and connecting with the signa l trans fer hypothes is, markettiming hypothes is, market effic iency, tobin Q theory.This paper adopts event studymethod to test the market effect of the ins iders’ shares increasing behavior, the resultsof the researches show that, the listed companies’insiders including large shareholdersand executives both make positive reactiones, especia lly the market reaction in theannounce ment day is the most significant, but the ir reaction degree is obviousdifferent,it means the information between the big shareho lders and executives in thecompa nies is different, the shares increasing behavior of the big shareho lders canmake more inte nse than the behaviors’ of the executives in the secondarymarket.Based on the above analys is, this paper selects the first shares increasingproportion as exp la ined variab le, through setting up multip le regress ion model toexpla in the motivation o f the shares increasing behaviors. In the process, this modelgets rid of multicollinearity, autocorrelation a nd heteroskedastic ity proble ms. Thispaper introduces epidemic behavior financ ia l theory in recent years to research theins iders’ shares increasing behavior, and the model set up p/e ratio le vel and tobin Qvalue as expla natory variable, the e mpirica l analys is results show that, the lowvaluation leve l o f stockes is a lse the reason of the ins iders’ shares increas ing behavior,this result a lso confirms the ratio nality of market timing theory, and reflects theins iders have the strong timing capab ility.And the big shareholders’ shares increasingbehaviors are often re lated to equity contro l ability, to ma inta in lo ng-term equitycontro l status is the ma in reason for the shares increasing behaviors of bigshareholders,while the business performance and deve lopme nt of the industry is the main reason of executives.