Research On The Behavior Of Executives’ Stock Holdings In Listed Companies

With the smooth implementation of the split share structure reform,the revision of the company law and the securities law,and the introduction of a series of encouragement and support policies and measures by the Chinese government,the constraints on the increase of executive stock holdings are decreasing day by day,so the phenomenon of executive stock holdings is increasing day by day.From 2005 to the end of 2021,the number of shares held by senior executives of Listed Companies in China reached 35.819 billion,with an increase of 182.260 billion yuan.It can be seen that in China’s capital market,the increase of shares held by senior executives of listed companies occurs frequently,so what are the motivation and consequences of the increase of shares held by senior executives?The study of these problems has important research value.This paper takes Oceanwide Holdings as the case study object.Firstly,it combs the institutional background,theoretical basis and related research of the increase of executive holdings of Listed Companies in China,and summarizes the practical basis of the increase of executive holdings of listed companies;Secondly,based on the perspective of agency cost,signal transmission and debt structure,this paper analyzes the mechanism of executive overweight on corporate value;Thirdly,focusing on the operation practice of Oceanwide Holdings,this paper analyzes the implementation background,strategy and contract characteristics of the increase in shares held by Oceanwide Holdings,and combs and analyzes the implementation process of the increase in shares held by Oceanwide Holdings in detail;Then,it deeply analyzes the real motivation of the increase of executive stock holdings of Oceanwide Holdings,and analyzes and investigates the consequences of its increase on governance performance,market performance and financial performance;Finally,it summarizes the research conclusions of this paper,and puts forward practical enlightenment and management suggestions.In general,through the case study of Oceanwide Holdings,it can be seen that there are motives for the increase of executive stock holdings of Oceanwide Holdings to obtain excess returns,convey good news,broaden financing channels and reduce the risk of equity pledge closing positions.In addition,the increase of executive stock can reduce the company’s agency cost and improve the company’s dividend policy,which can bring positive market effect,but the effect on improving financial performance is not obvious.Therefore,enterprises should give reasonable play to the market effect of executive stock increase and promote the stock price to return to a reasonable level;Investors should be cautious about the increase of senior executives’ shares and grasp the best investment holding period;Regulators should strengthen the supervision of senior executives’shareholding increase and promote the timely disclosure of information.