Research On The Motivation And Economic Consequences Of The Increased Holdings Of The Major Shareholders Of Listed Companies

The reform of non-tradable shares is a milestone in the development of China's capital market.Since the era of full circulation,the behavior of major shareholders has undergone significant changes.They have begun to enter the secondary market for trading,and will take some actions to stabilize and enhance the company's share price.At the same time,with the revision of the "Management Measures for Acquisition of Listed Companies" and the introduction of many incentive and support policies by the state,the restrictions on increasing the holding of the company's shares by large shareholders have gradually been relaxed,which has triggered a wave of increasing the holding of large shareholders.From 2007 to 2017,there have been nearly 5,000 cases of large shareholder increase in Listed Companies in China.Few researchers deeply understand and analyze the motivation of large shareholders' increase in listed companies and the impact of increase on performance through specific case studies.Through text analysis,grounded research and case analysis,this paper takes Shanghai Jahwa Corporation as the case study object,combines with the background of large shareholder increase,studies the motivation and economic consequences of the two large shareholder increase incidents,deeply analyses the market and economic benefits of the incidents,and tries to explain the motivation and economy consequence of the large shareholder increase of listed companies.The first chapter of this paper mainly introduces the research background,research significance and research framework.The second chapter mainly combs the theoretical basis,literature review and institutional background.The third chapter mainly analyses the current situation and operation mechanism of the large shareholders' increasing shareholding behavior of listed companies.The fourth chapter launches the case of the large shareholders' increasing shareholding of Shanghai Jahwa.The fifth chapter mainly analyses the large shareholders' increasing shareholding behavior of Shanghai Jahwa.The sixth chapter mainly analyses the economic consequences of the increase of shareholders' holding in Shanghai Jahwa.The seventh chapter is the conclusion and enlightenment.This paper finds that the majority shareholders of listed companies enhance the control of the company by increasing their holdings,better realize the management of the company,more actively participate in the company's decision-making,and have a positive impact on the company's long-term performance and overall value.Major shareholders can better guide the development of the company and improve the efficiency of the company's operation and management by increasing the proportion of shareholders.At the same time,optimizing the ownership structure of enterprises can avoid the drawbacks of decentralization of ownership.However,the short-term undervaluation of the transmission company's share price has not achieved the desired results,and the signals of optimistic company's future development have not produced the expected positive effect on the market.Therefore,investors should be cautious about the behavior of large shareholders,and should not follow up blindly.