| Since the completion of the equity division reform, whenever our nation’s securities market experienced large-scale down-regulation or the high panic of the market sentiment, and severe the irrational sell-offs, the management levels would think of the measure of “encouragement of the Share-raising of major shareholders so as to suppress the market over-panic. Seen from the efficacies in the past several events, they indeed played the role of changing the market supply and demand status over certain period of time, and elevating the stock market sentiment, thus stabilize the market. Therefore, such events feature very high value not only to the listed companies, the managers, or the investors. Therefore, “Share-raising events of major shareholders†have begun to attract the attention of the theoretical circle, and the related issues have also gradually began to the research scope by the scholars. However, most of the existing research have regarded the companies with big market values in Shanghai and Shenzhen stock exchange market as the research subjects, while there is scarce research which regarded those companies with smaller market values on the SME Board and the GEB as the subjects of the survey; meanwhile, most of the related articles only conducted analysis on the short-term effects of the stock prices after the happening of the Share-raising events, but there is little research on whether the events feature any investment values over the long-term, not to mention the proposal of the investment strategies based on the events. In view of such a background, the author constructed the framework of this Paper.This Paper regarded the period between January 1st, 2010 and December 31 st, as the time background of the research, and the Share-raising events of the controlling shareholders of our nation’s listed companies on the SME Board and the GEM board during that period as the research subjects and focused on the application of the Event study methodology and the multiple regression analysis, investigated the short-term effect of the Share-raising events of the controlling shareholders and the influencing factors of the effect; meanwhile it also conducted research and probing of the holding motivations of the controlling shareholders. Furthermore, in order to bestow upon the study more practical values and realistic significance and in order to make enable the investors to better apply the research outcomes in the investment practice and achieve substantial returns, this Paper also conducts innovative analysis of the short, medium and long-term investment values of the Share-raising stocks so as to probe whether there exist relevant investment strategies that can bring the investors with higher levels of expected returns.Regarding the short-term market effects of the Share-raising events of the controlling shareholders, we found that regardless the overall samples or the sub-samples that were divided based on the divisions of the market blocks, on the announcement date and an one day after that there were rather substantial excess returns, and meanwhile the accumulative average excess returns from the announcement date to the15 th day after the announcement day were also outstanding, and they were substantially positive, and later after the significance tests were done on the variations of the excess returns of the SME Board and the GEB, it was found that there were no substantial differences between these two, and a conclusion could not be drawn that the SME Board featured more investment values than the GEB; regarding the influencing factors on the sizes of the market effects of the Share-raising events, we found that after the Share-raising announcement was publicized, the investors will conduct key concerns on their Share-raising proportions, the sizes of the controlling rights, the sizes of the Company PB countdowns as well as the growth rates of the net asset returns so as to assist them in stipulating the investment decisions; regarding the influencing factors of the Share-raising proportions, we found that when the controlling shareholders are defining the Share-raising proportions, they would have key concerns on such indicators as the Companies’ earnings per share, BE/ME ratio as well as CAR(-5,-1), and based on the sizes of these indicators, define an optimum Share-raising proportion; in the aspects of the short, medium and long-term investment values of the Share-raising, we found that regardless the investors of super short-term, short-term, medium term or long-term, the events all featured high investment values. Meanwhile we also briefly proposed relevant investment strategies for the references by the investors. |
