Research On The Relationship Between Cross-shareholding Ratio And Stock Price Of Chinese Listed Companies

Cross-shareholdings is not only a method of company capital operation,but also a way of development.It is playing a very important part in capital market development.The development of Cross-shareholdings in our country originated from the 90',20 th century.At that time,in order to solve the problem of reform in state -owned companies, cross-shareholding was first mentioned.The cross-shareholdings'relationship between companies can effecttively help a lot of large-scale state-owned companies reach scale of access to capital markets, meanwhile cross-shareholdings'relationship can maintain joint-stock reform on the basis of "public ownership". This kind of institutional advantage led to the prevalence of cross-shareholdings.In 1999,liaoning cheng da and gf securities cross holding,become the second shareholder each other,which is the first meaningful cross-shareholding,also it makes the situation of cross-holding between public companies and securities companies. After that, cross- shareholdings develop and maintain this situation.The split share structure reform in 2005 and the new corporation accounting standard issued in 2007 promote the cross-holding further development. With the bull market in China,the phenomena of cross-shareholding reached the top,and when the bear market came,listed companies lossed and selled their stocks.In the academic community,the research on cross-shareholding is only in its infancy. The researches stay in the theory and less demonstration.Many papers focus on vacancy in law and how to enjoy their revenue after new corporation accounting standard.The paper about the relationship between cross-shareholding ratio and stock price has theoretical and pragmatic significance to capital market and listed company.This paper analyses form qualitative and quantitative two ways to find the relationship between cross-shareholding ratio and stock price with statistics and measure economics.The results show that stock price appears a positive correlation with cross-shareholding ratio.The ratio rises with the increasing of price,the ratio fells with the declining of the price. A parallel instance, the cross-shareholding ratio appears a positive correlation with stock price.The price rises with the increasing of ratio,the price fells with the declining of the ratio.There are six parts in this paper.The first part introduce the significance of this paper,the analysis tools and methods used in this paper.The second part is a literature of the cross shareholding both at home and abroad.The third part is an introduction to the cross shareholding,including the definition and the causations of cross shareholding,the influence of cross shareholding to the companies and stock market. The fourth part introduces the development of cross shareholding in China,form region,industry,cross shareholding ratio and classification.At the end of this part the paper summarizes the characteristic feature of cross shareholding in our country.The fifths part is a demonstration of this paper. We adopt the data of public companies listed on the Shanghai and Shenzhen stock market over the period 2007 through 2009 to be samples. Then use the panal data model and draw conclusions through data analysis.The last part is a brief conclusion of the whole paper,There are three innovation point in this paper. The first is there are less demonstration papers about cross shareholding.But the paper chooses the title about the relationship between price and cross shareholding ratio to make a demonstratio paper.The second is the panel data model has its own advantage,also it is a advancedmeasure economics.The paper combine the hot spot issue with the advanced measure economics.The last one is tha paper adopt the lastest data,it is more significance.The theory research on cross-shareholding in our country is only in its infancy.With the popular of the behavior of cross-shareholdings in stock market,there are more and more data we can be used in research,so many problems need to research further form many aspects,including case study,data model and statistical analysis.Especially the influence of split share structure reform.