A Study On The Behavioral Characteristics Of The Major Shareholders Of The Listed Companies After China's Non-Tradable Share Reform

The research on the behavioral characteristics of majority shareholders has been a vital part in the field of corporate governance. In China, majority shareholders universally exist in listed companies, but the structure of majority shareholders and their interest-gaining mechanism have changed after China's Non-Tradable Share Reform. A correct understanding on the majority shareholders' motive, activities and their impact is conducive to regulating majority shareholders' behavior, adding company value and preventing them from expropriating company and minority shareholders. We hope this literature review will bring inspirasion for the research on the new behavioral characteristics of the major shareholders after China's Non-Tradable Share Reform. As an institutional reform, China's non-tradable share reform has fundamentally changed the interest-gaining mechanism of China's major shareholders of the listed companies. Accordingly, the major shareholders' behavioral characteristics have fundamentally changed from the tendency of tunnel-digging before this reform to the positive implementation of support after this reform. Major Shareholders' supporting behavior comprises 4 categories, namely, bringing well performing assets into the listed companies, actively carrying out business co-operation with the listed companies, providing support for the debt restructuring of the listed companies and directly purchasing the listed companies' non-performing assets. This is condusive to the improvement and development of both listed companies and China's stock market.