The Research On Short-term Wealth Effect Of Shareholding Division Reform Of Agricultural Listed Company

At present, one of the important characteristics of the Chinese capital market is shareholdings division, which refers to circulating stock and non-negotiable stock coexist among one total share of listed company in China's securities market.Every share has a very great difference in view of stock price, circulation and transferring procedure, etc. It leads to the same shares with different rights and different prices and that situation circulation markets separated respectively. The system design of shareholdings division has influenced the anticipated stability of security market and made the company manage lack the common interest's foundation. It is not only unfavorable to the promotion of the management system reform of state-run assets, but also has already become a great obstacle in improving the basic system of capital market. Thus, it's very urgent to solve the problem of shareholdings division. On the base of summarizing former research on shareholdings division reform, this text carries through research on the effect of short-term wealth on agricultural listed company's shareholdings division reform.The short-term wealth effect depends on the extra income brought by fluctuation of stock prices caused by all kinds of factors of security market. According to dividing criterion of agriculture in assortment code of listed company and whether the listed company completes shareholdings division reform, I have chosen 23 agricultural listed companies as studying collectivity. The main form of the consideration schemes is stock dividend, which is consistent with the situation shareholdings division reform. In the experimental research, I utilize EVIEWS software and set up the linear regression model to research on the market change of sample companies' shareholdings division reform and the shareholder's income through the index of price and trade volume as well as excess earning ratio, and then I drew the following conclusions.1. In the previous period of shareholdings division reform the stock price and trading volume both tend to rise, which has further proved the news effect does exist in security market.2. On the day, the closing price, trading volume and shareholder's excess earning ratio reach the maximum.3. In 23 agricultural listed companies, the excess earning ratios are various and some are even minus. In view of the single factor model, the excess earning ratio perhaps has some thing to do with the level of consideration schemes, enterprise business performance, diversifying operation and so on.4. With the criterion whether the value of AAR and CAR are positive, the result shows the shareholders in 19 companies of 23 agriculture listed companies have gained excess income because of shareholdings division reform. It means short-term wealth effect exists. The situation of the extra wealth in whole agricultural market indicates normal distribution. With the completion of shareholdings division reform, the wealth effect fades gradually. Shareholder's income of listed company comes back to company's own quality, improving situation of administration structure, etc. finally. The adjustment and perfection of internal factors of company is the key point of shareholder's wealth maximum.5. Market investors have paid much attention to shareholdings division reform. Judging from the tendency of rising stock price, we could say shareholdings division reform has revitalized the development of security market to some extent.The empirical research has proved effectively that the increasing value of listed company is foundation of company's sustainable development and shareholders' benefits. In later period of the shareholdings division, the agricultural listed company must adapt to the new market change to alter the idea progressively and adjust the management mode. There are some suggestions that the agricultural listed company accomplish the following several points in transition period:(1) Taking the advantages of policy; (2) Bringing the comparative advantage into play; (3) Basing on the staple and pay attention to the diversification. (4) Improving the technology of agricultural products; (5) Perfecting the corporate governance structure; (6) Paying attention to management of value; (7) Strengthening investor's relation management; (8) Cultivating the idea of community responsibility.