Theoretical And Empirical Research Of Major Shareholders’ Reduction And Sustainable Growth

In order to solve a series of problems caused by equity division, on April29,2005, China Securities Regulatory Commission issued "Notice of related problems about experimental unit to reform the shareholder structure of listed companies", which was the beginning of reforming the shareholder structure. With the completion of reforming the shareholder structure and desterilization of restricted shares, shareholders dumped lifted shares to share the cake of capital appreciation. Reduction of major shareholders would make effect on the stock market and the operating performance of listed companies. The company’s growth is especially crucial to sustainable development for the companies in the emerging economies such as China. Therefore, we need to research on the impact of reduction of major shareholders on the listed companies’growth.The thesis includes five parts. The first part begins with reforming the shareholder structure, introduces the background and the research significance of reduction of major shareholders, summarizes the existing literature about reduction of major shareholders from four aspects: motivation, arbitrage means and timing, effects, describes the research methods, thinking and innovation. In the second part, defines the scope of major shareholders based on the existing literature, summarizes the research achievement of shareholding structure and company’s growth at home and abroad from three aspects:concentration of ownership, equity balance and equity nature, specialized elaborates above research based on life cycle. The third part discusses the effects of shareholding structure on company’s growth, and puts forward the hypothesis that what effects would reduction of major shareholders would make on the company’s growth of the listed companies in the growth period and mature period. In the fourth parts, introduces the selected sample and its source, builds the company’s growth evaluation system to calculate the growth score by factor analysis. Besides, creates a multiple regression model about reduction of major shareholders and company’s growth, and tests above hypotheses through descriptive statistics, correlation and regression analysis. In the last parts, summarizes the research result and points out the research shortage and further research directions.