The Empirical Research On The Shareholders' Motivation Of Block Transfer

Block transfer is an important external mechanisms of corporate governance. Studies focus on shareholders' motivation of block transfers who sold blocks before equity splitting reform have been studied by scholars,but scholars seldom studied empirically on shareholders' motivation of block transfer after shareholders' motivation of block transfer.What is the cause of block transfer? Whether financial situation of listed companies affects shareholders' motivation of block transfer? What are the factors which have played a decisive role in its?Facing the expansion pressure of restricted shares after equity splitting reform, in-depth analysis of the above problems helps listed companies to strengthen corporate governance in order to improve their financial situation, inhibit "voting by feet" from shareholders, reduce the possibility of being taken over and improve the market competitiveness,and helps shareholders choice investment strategy refering to the financial position of listed companies in different market scenarios to develop rational investors.In this paper, we take the sample of 1119 listed companies announced block transfers from 2006 to 2008, and use single factor of variance analysis to compare the differences of financial position between block buying companies and block sold companies,and do regression analysis by establishmenting multiple regression models and using Eviews analysis software. Finally, we conclude that (1) Profitability, solvency and ability to grow from block buys samples are stronger than block sells samples,but block buys samples' market value is smaller than block sells samples,which indirects that shareholders are probably to buy shares from better financial position.Although market efficiency has improved in China's securities, the price of shares is still vulnerable to manipulated.;(2) Operating margin ratio has a significant positive effect on ZRBL,but the effect from ROE and Book value is not significant,which shows that operating margin ratio is a significant shareholders' motivation of block transfer,which is the empirical evidence for listed companies to increase operating margin ratio, improve the financial situation, strengthen corporate governance,and reduce the possibility of being taken over; (3) Equity ownership concentration and the degree of equity balances is an important shareholders' motivation of block transfer. Dispersed ownership structure enhance the possibility of "voting by feet",and dispersed ownership structure is conducive to an active stock market and a effective block transfer;(4) Board Characteristics is an important shareholders'motivation of block transfer. The expansion of the board helps reduce corporate risk, enhance shareholder confidence, strengthen internal management, and mitigate two types of agent issues. As an internal oversight mechanism, independent director is helpful for prevent transfering company resources against the interests of minority shareholders for large shareholders'interests; (5)Compared with the bear market, shareholders'motivition block transfers in bull market are more susceptible to listed company's financial condition,and positive investors in bull market will choice investment strategies according to listed company's financial position...