An Empirical Research On The Share Buying And Selling Of The Major Shareholders With Its Influence On The Market And Corporate Performance

Before the reform of non-tradable shares, the main shareholders holdings can’t flow in the stock market. The interests of the main shareholders and the interests of the small shareholders aren’t related, which leads to the phenomenon that the main shareholders isn’t concerned about the stock price. After the equity division reform, main shares held by a shareholder can also circulate in the stock market. The interests is highly relevant to small shareholders. The main shareholders will take appropriate actions to make stock price rising, for they are very concerned about the stock prices. The research in this area is rarely at home and abroad, therefore,in this paper, the study is very meaningful.This paper is divided into five parts:the first part is introduction of research background, research significance, research content and innovation and deficiency of this article. On one hand, the purpose of doing this is to make the article more clearer, easier to understand. On the other hand, it also lays the foundation for this article to be written smoothly. The second part is literature review. There are two purposes of this part:One is to introduce the research situation of domestic and foreign scholars. The other one is to look for reference for this article. Literature review is focused on ownership concentration and corporate performance, the increase or decrease of shares of the main shareholders and the market reaction. The third part is the research design, including three aspects:Samples and data selection, the design of the increase or decrease of shares of the main shareholders and the market reaction,the design of the increase or decrease of shares of the main shareholders and corporate performance. The fourth part is the empirical analysis of this article. According to the research methods and ideas of the third part, based on the selection of samples and data, I argue about the relationship between the increase or decrease of shares of the main shareholders, market reaction and corporate performance. The fifth part is the research conclusion, including an explanation of the results of empirical research and related suggestions.Through the research, I draw the following conclusions:(1) in terms of the market reaction after the main shareholders increase or decrease their shares, the company’s share price has obvious negative excess return before the main shareholders announce that they will increase shares in large scale.On that day they announced, or the day before, or after, the company’s share price has significant positive excess return. However, the effect of the announcement of small proportion increase is not obvious. Before the main shareholders announce that they will increase shares in large scale, there is significant positive excess return. On that day, or the day before and after, there is significant negative excess return. As to the announcement of small proportion decrease, except a tiny significant negative excess return on that day, the other change is not obvious.(2) in terms of the corporate performance after the main shareholders increase or decrease their shares, the company performance will decline when the major shareholders increase their holdings and will rise when they decrease their holdings. Although it is not obvious, from the point of positive and negative value, most of the the company performance will decline after the main shareholders increase shares and will rise after they decrease shares.According to the conclusion, I put forward the suggestions:We can choose the time to trade. We can intensify the securities crime punishment to reduce insider trading and other crimes. We should strengthen the information disclosure to reduce the "information asymmetry" and make the corporate governance structure better.