The Analysis Of Major Shareholder’s Trading Motive Of China’s Listed Company Since The Share-trading Reform

With the completion of the share-trading reform, China’s securities market has entered thecirculation times. Previously restricted circulation state shares, legal shares and person shares can nowbe traded in the secondary market. However, our scholars lack of research on the transaction of largeshareholders. Therefore, the clear motive for majority shareholder transactions, is conducive to a richabundance of major shareholder transactions further study. it can also encourage regulatory authoritiesto monitor large shareholders transactions effectively and improve the efficiency of supervision.Finally it can protect the interests of small investors and promote sustained and healthy developmentof China’s securities market. Specific research includes the following aspects:(1) Analyze the status of large shareholders behaviors in the market transactions. It can give usfurther understanding of the major shareholder transactions by analyzing the time distribution ofrestricted shares lifted, the nature of the transaction the shareholders, the sample company’s financialstatistics, the proportion of different types of shareholder transactions in a different section of thefrequency range of different aspects.(2) Study China A. share market trading motives through empirical studies. We mainly useevent study. We select multiple event window period depending on the impact of a range of differentevents. We analyze large shareholder’s transaction motive by calculating the excess rate of return indifferent window period and studying the excess returns changes before and after the announcement.(3) Analyze the major shareholder’s reduction and holding motive comparatively. Bycomparing the difference of excess return between overweight and underweight behavior, we can findwhether different direction will lead to different trading motives.(4) It can provide legislative institutions, regulatory and investor with relevantrecommendations of major shareholders’ behaviors by comparing with the major shareholders’behaviors of western mature capital market. Both mobility motive and signal transmitting motive arethe major shareholders’ rational demand as an economic man and then their transaction is normalmarket transactions, no ground for blame. Otherwise the profit motive and motive of informationmanipulation of stock prices are damage to the other medium and small investors’ interests, so this isstrictly prohibited.