Analysis On The Increasing Holding Motivations And Performance Effects Of Major Shareholders Of Listed Companies

With the completion of the shareholding system reform,China's stock market has entered the era of full circulation,non-tradable shares began to translate into shares that can be traded in the market,and holding a large number of non-tradable shares is no longer a "privilege" of major shareholders of listed companies.At this point,the ups and downs of stock prices directly affect the vital interests of major shareholders.Major shareholders of listed companies also enter the secondary market to trade,and they will take some action to stabilize and enhance the share price of company.Under a large number of encouraging and supporting national policy,more and more large shareholders of listed companies began to favor the use of increasing holding way to influence the stock price,thus setting off a "increasing holding boom".Because there are significant differences in the ownership structure,policies & regulations of listed companies in mature markets of foreign countries,so there is little research on the increasing holdings behavior of large shareholders.However,in China,due to the occurrence time of large shareholder holdings events is still relatively short,although the results of related research are gradually improved and enriched,there are still many deficiencies and shortcomings.The research at home based on a large sample by empirical study aims at developing a conclusion which can be universally applied.But few researchers have made a detailed case study to understand and analyze the motivation of the major shareholders' holdings in listed companies,and the impact on the performance after the increasing of holdings.Through the case study method to study the holdings of major shareholders of listed companies,it not only can more accurately understand the significance of holdings,but also can provide a certain theoretical basis for the relevant departments to improve the relevant laws and regulations of major shareholder holdings,and provide reference for other major shareholders of listed companies to increase holdings as well.The paper employs the research method of the combination of normative research and case study.In the part of normative research,this thesis summarizes the existing literature,and makes a theoretical overview on the concept of holdings of major shareholders in listed companies,and relevant laws,motives,mechanisms and evaluation methods of performance effects.In the part of case analysis,taking the holdings of A major shareholders of E Wushang A as the research object,this thesisanalyzes the shareholders' motivations of increasing holding in the listed companies to find out the reasons and influencing factors behind the holdings of the listed shareholders.By analyzing the possible market impact of holdings,it provides an idea for investors to use the signals transmitted by events to construct investment strategies.An in-depth analysis on the performance effects of major shareholders before and after the holdings of listed companies can provide a reference for the development of listed companies.The research of this thesis also helps to enrich the case studies related to the holdings of major shareholders.This thesis has been divided into five chapters.The first chapter is introduction.First of all,it describes the background and significance of the study,reviews and sorts out the current research status of the large shareholder holdings of listed companies at home and abroad,and on this basis,puts forward the research ideas and methods.The second chapter is a theory summary on large shareholders' holdings in listed companies,including the concept of holdings of major shareholders in listed companies,the relevant laws and regulations,the motivations of holders of listed companies to increase their holdings,the effect mechanism and performance effect evaluation method of large shareholders' holding performance effect in listed company,as well as the theoretical basis including the control income theory and the signal transmission hypothesis.The third chapter is the introduction of the holding case of major shareholder in E Wushang A.This part introduces the basic situation of E Wushang A,and gives a brief explanation to the holdings of E Wushang A,including the analysis on major shareholder holdings motivation,specific implementation actions and results of two holdings of major shareholders action.The fourth chapter analyzes the performance effect and reasons of major shareholders holdings in E Wushang A.This thesis analyzes the impact of the holdings of E Wushang A on the performance of the Company from the perspective of financial performance and market effect,and analyzes the reasons of the performance effect.The fifth chapter is the research conclusion and enlightenment of the case analysis of the holding of E Wushang A major shareholder.By summing up the above analysis results,draw the following conclusions:(1)E Wushang A major shareholder further strengthened its control over the company by increasing holding,and sent good news to the stock market.(2)The holdings behavior of E Wushang A major shareholder can stabilize the stock price,increase shareholder wealth,and have a long-term positive impact on the business performance of the company.According to the corresponding conclusions,it can be proved that in the secondary market,theholdings of major shareholders can play a positive role.If can be properly guided,it not only contributes to the improvement of the effectiveness of the domestic securities market,and has a positive meaning for the good development of domestic listed companies.While relaxing control and encouraging the major shareholder of listed companies to increase their holdings,the relevant regulatory authorities should also maintain a high level of vigilance against improper holdings behavior.Taking the real case of domestic securities market as the object of study,this thesis analyzes the motivation of large shareholders' holdings of listed companies,and its influence on the performance and the cause of influence,and provides reference and theoretical basis for the major shareholder holdings,investor investment planning and departmental supervision of other listed companies.