The Study On Split Shares Reform Of Our Country Based On Institutional Viewpoints Of Game Equilibrium

The reform of split shares of listed companies in our country started on May 29th, 2005, which commenced a significant institutional change in our capital market. Split shares of listed companies, which is a fundamental institutional defect in capital market of our country, is a critical obstacle in the reform, openning-up and stable development of our capital market. With the progressing reform of capital market, more and more experts put great emphasis on this issue.While, previous discussions almost focused on reviews of its meaning as well as some technical problems, the author proposes that the reform of split shares is virtually a significant institutional change, and tries to refresh the internal logic of the reform from the perspective of game equilibrium of institution with some related institutional change theories of neo-institutional economics in this paper. Still, this paper strives for some breakthrough in analytical methods and theoretical viewpoints to provide some theoretical and practical inspiration about how to deepen the reform of split shares of listed companies in our country and other related institutional reform in our capital market.Firstly, this paper defines"split shares","full circulation"and some other important items related to the reform of split shares from the perspective of game equilibrium of institution, and states that these institutional arrangements were the outcome of gaming among participants in our stock market under some special historical backgrounds, which consists in participants'consciousness and can be implemented itself. What's more, the institutional change from"split shares"to"full circulation"is, in fact, a changeover from one equilibrium to another equilibrium under some preconditions.Secondly, on the basis of these definitions, the author introduces considerations of the main facts, which promoted the reform of split shares, and descriptions of representative characteristics in the process of institutional change after practical investigation of the split shares of our listed companies. Then, this paper puts forward this reform is virtually a compulsive institutional change in which the force of government is dominant, instead of a induced one. At the same time, interest groups and ideology are also very important facts. In a word, the process takes on characteristics of path dependence and institutional innovation all the time.