On Motivation Analysis And Influence Research Of Big Shareholders To Increase Shareholdings

Chinese securities market is in an era of full circulation that can be traded in the secondary market.Except for a few specific stocks with limited sales conditions,most of them are unrestricted stocks.At this time,the rise and fall of stock prices right affect the vital interests of big shareholders,who will take some actions to stabilize and improve the company's stock price when the stock price performs poorly.Under the encouragement and support of many national policies,the wave of big shareholders increasing their shareholdings is becoming more and more fierce,they choose the way of increasing their shareholdings to affect stock prices.In mature foreign markets,there are many studies on internal people repurchasing shares.However,in China,due to the short time of occurrence of big shareholders increasing their shareholdings,most of the existing studies adopt empirical research methods,and few researchers deeply analyze the motivation and effect of big shareholders increasing their shareholdings through specific case studies.This paper focuses on this topic through case study method,which can understand the significance of big shareholders' increasing shareholdings more accurately.This paper adopts two kinds of research methods,literature research and case analysis.In this way,this article is divided into five parts.The first part describes the research background and significance,domestic and foreign scholars' study in this area.On this basis,this part comes up with the paper's research ideas and methods.The second chapter is an overview of relevant theories.It includes: the concept of big shareholders of listed companies increasing their shareholdings,the evaluation method of the effect of big shareholders increasing shareholdings and the four correlation theories.The third chapter introduces the basic situation of Three Gorges Project,the background of the case,the motivation of the increases,and the specific measures of the two increases.The fourth chapter is the analysis of the effect of the increase.This part combines the theoretical part to analyze the market effect and the financial performance.Chapter five is the conclusion and prospect part.Through the analysis of the whole paper,following conclusions are drawn: firstly,the big shareholder of Three Gorges Project send a positive signal to the securities market by increasing their shares,enhance the investment confidence of investors,and the market responds pretty good.Secondly,the big shareholder of Three Gorges Project expanded the control right by increasing its stake in the company,better realized the management of the company's operation and created more value for the company.Thirdly,the behavior of big shareholder of Three Gorges Project increasing their shareholdings has a long-term positive impact on the company's financial performance,which is conducive to achieving a win-win situation between the company and the big shareholder.Since the behavior of big shareholders increasing their shareholdings can play a role in stimulating the vitality of the securities market,if correctly guided,it will not only help improve the effectiveness of Chinese securities market,but also have a positive significance for the good development of domestic listed companies.However,this depends on the establishment of an orderly securities market.The regulatory authorities should improve the regulatory mechanism and maintain a high degree of vigilance to prevent inappropriate increase.The analysis of this paper also provides a reference for big shareholders of other listed companies who are preparing to increase their shareholdings to think more,and for investors to correctly identify the real motives of big shareholders and then make out their investment strategies rationally.