Analysis On The Stock Price Effect Of Large Shareholders’ Assets Injection

At the beginning of establishing the securities market, segmental listing has made large assets related to the listed company business remained in their parent companies, which cuts off the industrial chains of between listed companies and large shareholders. The frequent related party transactions between them also has brought many disadvantages to the listing companies’ development. Usually, large shareholders’ asset injection can deal with defects of segmental listing. A series of encouraging policies and regulations which promulgated by the government has greatly improved the enthusiasm of large stockholders’ asset injection during the reform of the shareholder structure of listed companies. Since then, behaviors of assets injection appear frequently in China’s securities market, also caused the attention of academic circles. Current researches focused more on tunneling motivation of big shareholder’assets injection, while ignoring the existence of various causes accounted for assets injection implemented by large shareholders under the special system background of China’s capital market. In addition, the research for the empirical analysis of stock price effects of large stockholders’ asset injection also focused on the short-term announcement effect, only a very small amount of literature involved long term operation performance. Therefore, studying economic consequences of large stockholders’ asset injection, especially long-term stock price performances, has important theoretical and practical significance.This paper utilizes event study method and multiple regression model to verify the short-term and long-term stock price effect before-after assets injection, and conduct segmentation study of samples from three angles:the asset’s type, pattern of assets injection and ownership properties. Results indicate the stock price effect of large stockholders’ asset injection has significantly positive to the listed companies whether in the short or long term, and the stock price effect of large shareholders’ assets injection depends on specific proxy variables:the short-term announcement effect is positively correlated with assets injection’s size and pattern, but has no significant relationship with asset’s.type and ownership properties. While, the long-term stock price effect has significant positive correlation to asset’s type and size, but negative relationship with ownership properties and pattern of assets injection.Based on the above study, this article put forward the following policy suggestions. First of all, the government should further encourage large shareholders to inject related and superior assets into listed companies, improving classified Examination systems of asset injection. Secondly, further standardize the related system of directional add-issuance, perfecting the examination and approval system, suspension system and information disclosure system of the assets injection and directional add-issuance in China’s capital market. Finally, strengthen supervision on the quality of injecting assets through the establishment of shareholder voting system, financial consultant system and asset evaluation system. At the same time, strengthen the self-discipline consciousness of large shareholders fundamentally through trust responsibility education and clearing follow-up responsibilities of injected assets.