Research On Shareholder Structure Reform

Due to some historical reasons, a separation of tradable and non-tradable share came into existence at the initial stage of the stock market after its setting up. As a result of this separation, the rights and interests of the tradable shareholders can not be guaranteed without absolute control over listed companies. Since May, 9th, 2005, China began its reform of the shareholder structure of listed companies so as to settle the intricate problem which cumbered the healthy development of the China stock market in the long run.This paper first used relevant theories and data, combing with China's specific historical and structural background, to explain the cause of non-tradable shares, the character of the split of shares and the abuse of non-tradable shares,then to analyze the consideration—the core of this shareholder structure reform, lastly to analyze the effects of this shareholder structure reform to the stock market, corporate governance and the value of the tradable shareholders.Although models and the relevant data limitations, pending further study confirms the accuracy of the results, but the result of the research still shows that there is a positive relation between the stock price and this shareholder structure reform.In this reform, the interests of the tradable shareholders are safeguarded in shortrun.But the relation between the stock price and the level of consideration is not obvious in longrun. The improving degree to corporate governance structure of our listed companies can't be judged by present datas.