Research On Motivation And Effect Of Large Shareholders Of Jiuli Increasing Holding

After the completion of the share-trading reform,more and more listed companies have increased their holdings by major shareholders.So far,there have been four waves of large-scale holdings by major shareholders in my country.As the most important shareholder of the company,the majority shareholder will inevitably have an impact on the management and development of listed companies.However,the academic circles have different opinions on the research on the increase of the majority shareholder.Some scholars believe that major shareholders increase their holdings because they are optimistic about the company's development prospects and produce spontaneous behavior,which can increase the company's stock price and have a positive impact on the company.However,some scholars believe that major shareholders increase their holdings only to earn short-term excess.The self-interested behavior of income has an insignificant or even negative impact on the company.So,what are the motivations for major shareholders to increase their holdings? What effect will major shareholders increase on the company? What mechanism and path are used to produce these effects? These issues have important theoretical and practical significance.Based on this,this article first sorts out the relevant literature on the motivation and effect of major shareholders' increase in holdings;secondly,on the basis of relevant theories,through mechanism analysis,it is concluded that the increase in major shareholders' holdings has increased the proportion of major shareholders' equity and cooperation due to the binding of interests.The strategic sharing of the company can alleviate financing constraints,reduce agency costs,and increase the level of risk-taking by managers;again,starting from specific cases,Jiuli Special Materials,combined with the specific process and characteristics of Jiuli Special Materials' major shareholders' holdings,increase their holdings The real motivation of the company was discussed,and case studies and comparative analysis methods were used to reveal the specific path that Jiuli Special Material's major shareholders' increase in holdings affects the company.After that,an indepth analysis of the effect of the increase in holdings was carried out.Finally,some conclusions were drawn.And put forward corresponding countermeasures and suggestions to other listed companies and investors.Through case analysis,this article draws the following conclusions: Based on the motivation of optimistic about the company's prospects,increasing the company's stock price,and consolidating control rights,the increase in holdings of Jiuli Special Material's major shareholders has had two positive effects.On the one hand,the increase in major shareholders' holdings has stabilized or even increased the company's stock price in the short term.On the other hand,the increase of major shareholders' holdings has a positive effect through three action paths.First,the increase of major shareholders' holdings binds the interests of major shareholders and the interests of the enterprise,which eases financing constraints,and thus promotes the improvement of the level of corporate investment;second,the increase of major shareholders' holdings has improved the company's profitability to a certain extent.Equity concentration,the increase in equity concentration is conducive to the reduction of agency costs,thereby improving the efficiency of corporate capital operation;third,major shareholders can increase the risk-bearing ability of managers through cooperative strategic sharing,and make managers inclined to risk Larger projects with positive returns will further enhance the growth of the company.