Research On The GEM Shareholders Holdings Of Motivation And Market Impact

Since the establishment of GEM,the GEM’s shareholders reduce stocksphenomenon is increasing.The frequency and the number of reduction is in linetrend.The year of2013in the GEM board has lifted the largest number of oneyear,and is also the shareholders reduction the largest and the most times of year.Thereduction behavior of the GEM shareholders has five characteristics, shareholders ofthe director and executive to reduce the number of relatively small compared withother shareholders,but the reduction of the scale are bigger than othershareholders.All from the reduction of sample, shareholders are more likely in thefourth quarter of the reduction,the holding shareholder more inclined to the thirdquarter of the reduction.The GEM shareholders to reduce the stock are consistent tothe market trend, the market on an upward trend,the shareholders reduce the numberof the stocks are also rose.For this phenomenon from the GEM’corporation high issueprice,the performance of the listing corporation, the market three reason to study bigshareholders’behavior.The results found that the shareholders to reduce the growthenterprise market of listing corporation high issue price is not much relationship,related to the profitability of the listing corporation and the management risk.If thecompany has high profitability, shareholders reduce the less number of listingcorporation shares,if the company’s operational risks are increased, the number ofshareholders to reduce the shares will also increase.The GEM board volatility rateand the number of shareholders reduction are positive correlation,if the market risk isincreased, the shareholders to reduce the number of shares is increased too.Throughlinear regression to analyze the influence of this kind of behavior to the market,foundthat shareholders reduce significantly negative correlation between the number andthe gem index,shareholders to reduce the increase in the number of the gem indexdecreased,especially listing corporation holding shareholder of the reduction.Thereduction in existence prior to the positive wealth effect obviously,reduction the positive wealth effect immediately disappear,It is suggested that the behavior ofshareholders to reduce the stocks may have to reduce the time.