Profit Mechanism Analyse On Condition Of Stock Right Split

Stock right split in the Stock market of china is a system arrange for large or middle size State-owned corporation to extricate itself out in the transformative-economic condition, and it has profoundly social and historical rootstock. in the course of economic transformation, in order not to oscillate main body status of state-owned, inducting state-owned stock, juridical person stock and public circulating stock , and definitely stipulating that state-owned stock and juridical person stock did not circulate temporarily, so all these caused particular phenomenon in the Chinese stock market that circulate and non-circulate stock Stock right split.The separation of interests between different kinds of share-holders has immanently resulted from the stork right split which is a historical institutional defect, materializing two aspects :One is the separation between the state shareholders and the corporate shareholders, The other is between non-circulating characteristics, pseudo- representatives of state shareholders and lacking of manager stock option incentive , the controlling shareholders pay no attention to the company' yields and the stock price of their own corporation ;On the other side circulating stock holders worry about the stock price fluctuation because they can only get returns from the capital gain. The reason is that their shave holding proportion is relative small whichcan put little influence on the dicision of the company, additionally, the dividend is meager. The interests' separation of shareholders result in the uncertain expects and distorted behavior inevitably, which will cause interest conflict and infringement. In the opinion of Institutional economics that shareholdings division will result in an increase of business expenditure and social cost, result in low efficiency of resource collocation, that the cause of shareholdings division is limited sense in the course of designing institution .Shareholdings division reform has not only necessity but also instancy. It' s way to effect a radical cure lies in institutional innovation, non-circulating shareholders properly compensating circulating shareholders , reasonably confirming mechanism of fixing a price and circulating mode that when non-circulating stock circulateOn the premise of fully taking into account the trend of reformation and progress on the condition of market economy, history cause of formation that state-owned shareholdings could not circulate, on the condition of market economy regulation on the condition of market economy and considering all aspects vested profit etc, eliminate predicament of profit separation between non-circulating shareholders and circulate hareholders radically, so wo can live up to the same interests for every stock—holder, the same right for every stock—holder and the same price for every stock-holder in deed.