Motivations And Determinants Analysis Of Holding Rivals’ownership In Chinese Listed Firms

With the reform and development of China’s economic system, China’ssecurities market is becoming standardized and mature and the investmentpatterns of the listed firms have changed a lot. It is increasingly frequent thata company is in procession of the competitors’ shares in China’s A-sharemarket. Holding the competitors’ shares is not only a capital operationmethod but also a company growth and expansion way, which has significantinfluence on the operation and management of the listed firms.This thesis is to study the shareholdings between the competitors of thelisted companies. The author first clarified the concept of the shareholdingsbetween the competitors and made the listed firms as the object to analyze China’s current situation of the shareholdings between the competitors of thelist firms of the same industry. Then by typical cases, the author analyzed andsummarized the main features of the shareholdings between the competitorsof the listed firms, so as to study the motivations and factors influencing theshareholdings between the competitors of the listed firms.The results show that the main motivations affecting the shareholdingsbetween the competitors of the listed companies in China’s A-share marketinclude:(1) strategic expansion of enterprises and synergies betweenenterprises;(2) financial investment;(3)stabling the stock price to resist hostiletakeovers. As for the factors that influence whether the companies will holdthe competitors’ options or not, the study shows that the scale and operatingprofits will have a positive impact while the ownership concentration willhave a negative impact.