Study On The Poineering Shareholders’ Behavior And The Company’ Growth

Poineering shareholders, advanced into the company before the IPO, are thosewho play a key role in capital resources and human resources of the company andthey hold the company’s key elements for long-term healthy development which isthe cornerstone of the stability of securities market. Especially after the IPO, inaddition to obtain high constitutive profit, poineering shareholders may also use theadvantage of information and low cost of holding to arbitrage in the market, Properarbitrage in favor of market return to value interval, but the use of informationasymmetry to excessive arbitrage will no doubt cause great harm on the company’sgrowth and the stability of the market. Therefore, poineering shareholders’ marketbehavior and its influence on the company’s growth should be attention, normativepoineering shareholders’ behavior is conducive not only to maintain marketstability, but also can maintain the company’s long-term growth. There are manyresearchers study on the shareholders’ behavior motivation and market impact, butfor poineering shareholders’ market behavior and the growth of company is less. Inthe paper, poineering shareholders’ buying behavior or selling behavior from2006to2010are analyzed. the research has not only practical significance, but also hascertain theoretical meaning.Firstly, This study analyzed two levels of "free-riding" problem, which isbased on the principal-agent theory, and established poineering shareholders are thecore strength of the company’s growth, and then explored the operator shareholdersincentives from" benefit cooperating effect "and" entrenchment defending effect"perspective; it is found that poineering shareholders’ buying behavior willstrengthen " benefit cooperating effect " and selling behavior will strengthen "entrenchment defending effect"; What’s more," benefit cooperating effect " is moreobvious when the largest shareholders have more shareholding proportion, and the "benefit cooperating effect " is more obvious when the Top Ten Shareholders holdmore stock, which reflects the equilibrium relation between equity balance andequity controlling. Secondly, the article discussed the motives and the model of IPOarbitrage which is based on the constitutive profit, the empirical result shows that poineering shareholders exist long IPO arbitrage opportunism. And lastly,according to the conclusion, proposed to how to restrict poineering shareholders’selling behavior,so as to transfer the goal of maximizing the interest of poineeringshareholders from arbitrage to the promotion of the growth of the company.