Share Reform Model And The Real Case - The Threshold / Time Cost "model

Reform on stock right splitting needs to carry out eagerly and is a historical taskin the process of current development of China's stock market, which affects deeplyto both the stabilization of our stock market and the realization of the strategic reformon our state-owned enterprises. After analyzing the historical reason and themalpractice of the problem of stock right splitting, and also based on the analysis ofthe main schemes proposed by other specialists and scholars to solve this problem, thepaper brings forward its own solution, which consists of two emphasis, that is,threshold price and time cost. The bid that Non-mobilizing stockholders sell theirshares of stock must not be less than the threshold price, which is calculated accordingto the surplus cost of mobilizing stockholder. Time cost is a stabilizer that can helpmerge the old and new companies and smooth the reform on stock right. In theconclusion, this solution can effectively low down the surplus cost of mobilizingstockholder, and help unify the profit /cost of mobilizing and non-mobilizingstockholders, therefore be expected to be one of good ways to solve the problem ofstock right splitting. Finally, the paper selects JinShan Company to design a case.