A Study On Economic Consequences Caused By Reduction Of Controlling Stockholder In The Background Of Full Circulation

In 2012, Zoomlion co., LTD. has established for 20 years old. In 2006, our country stock market basically completed the reform of non-tradable shares. Zoomlion had also completed this reform in this year. On the background of full circulation, Zoomlion keeps adjusting ownership structure, and its performance has been comfortably in construction machinery industry. In 2013, Zoomlion uses its relatively perfect corporate governance system to handle the suspicion of financial fraud properly. Whether its rapid development is related with the reduction of dominant stockholder shares what the economic consequences of reduction of dominant stockholder shares brings to the enterprise, and what the influence is bring to the corporate governance of the enterprise, this is what this thesis studies. Then this thesis researches the listed company economic consequences caused by the reduction of controlling stockholder share under the background of full circulation.Straighten out the reform of non-tradable shares the ownership structure of listed companies in our country, means the arrival of the era of full circulation. Under the background of full circulation, some listed companies reducing their holdings of shares by market value, to adjust its ownership structure, controlling shareholders through equity positions, change the equity structure of listed companies to reduce the agency cost, improve the corporate governance. First of all, historical processes from the equity division reform to the realization of full circulation are reviewed. And this thesis introduces the related theories the theory of equity structure and principal-agent theory, corporate governance theory and point traditional and innovative and traditional methods of reduction of controlling stockholder shares. Then, this paper summarizes researches in the full circulation. After that, on this basis of above basic theories in view of the reduction of controlling stockholder shares of listed manufacturing industry company, the thesis puts forward two assumptions. One is the reduction of state-owned shares improved the equity structure of listed machinery industry enterprises and enterprises performance. The second is reduction of controlling stockholder shares affected enterprise ownership concentration and equity balance degree and reduced the agency cost of the enterprise. This thesis plans to collect the relevant data of China machinery industry listed in the Shanghai and Shenzhen equity market to conduct empirical analysis in order to prove the two assumptions. And through the analysis of economic consequences of the Zoomlion co., LTD. Brought by the reduction of dominant stockholder shares, further verifies the two assumptions. Finally, according to the empirical and case conclusion and China’s national conditions, this thesis gives policy recommendations to the reduction of dominant stockholder shares in the full circulation times.