Empirical Study On The Major Shareholders' Increasing Holdings Of Listed Companies In The Context Of A Bear Market

The behavior of major shareholders of listed companies has been the focus of scholars. In 2008, China's stock market plunged into bear market large level adjustments, there are more than 100 companies major shareholders in the market increasing their own holdings. The specificity of times, the sensitivity of the status of its large shareholders, as well as its positive significance of the market, so as to make it the focus of the market from the outset. And so many companies in the market to increase its stake in the history of the securities are rare, due to the occurrence of major shareholders holdings short time from now, many studies have to be further in-depth, this article focus on the major shareholders' motivation, market reaction and its impact factors and other issues useful attempt, make the foundation for the further analysis of issues. in-depth understanding of the behavioral characteristics of large shareholders' increasing holdings is a useful reference for, investors, management and major shareholders own operations. In the empirical study, this article selected holdings of major shareholders of 133 listed companies occurred during the year 2008 as a research object.Using signaling hypothesis, market timing theory, the tunnel effect and the incentive effects and other theories to explain the motives of large shareholders,and also using multiple linear regression model to analyze this verification.Beause market is bound to act on the holdings of major shareholders form the corresponding response, then use the event study method, mean test method to study the signaling effect (the market reaction) and anchoring of the value.The results show that signaling hypothesis, market timing theory could explain the motive of China's holdings of companies in the market shares, that the signal of holdings of major shareholders played a significant role on the anchor stock value,still other theories can not explain motivation of the majority shareholder. On the market reaction, the holdings of major shareholders make significant effect on stock prices, and the excess returns reach maximum in the announcement the day before the announcement date. The study also found that increased holdings of major shareholders, play a significant anchoring effect on the formation of market prices, investors are based on the price of investment holdings of major shareholders to adjust decisions of investment behavior.