Research On The Motivation And Market Effect Of Major Shareholders Increasing Shares In China's Listed Companies

Before the shareholding reform was completed,the state-owned shares and legal person shares could not be merchandised on the market,so there was no concept of holdings by major shareholders in the secondary market.After the share reform,the times of the full circulation of shares has come.The non-tradable shares of major shareholders have also become non-tradable shares that can be traded.At this time,the stocks are more related to the wealth and interests of major shareholders,and the phenomenon of increasing holdings in the market is also gradually increasing.The share reform is completed.At that time,the market triggered a large-scale increase in holdings.So far,the market has experienced three large-scale wave of increase in holdings.As a flexible and varied approach to equity management,secondary market holdings have been favored by major shareholders since their creation.At the same time,many scholars have also shifted their research focus to this field,and mainly studied the effect and significance of this type of equity management,related academic achievements have also gradually increased.The article takes a sample of the companies whose stocks listed on the SME Board and GEM for the first time from June 2011 to December 2016 as the sample,focusing on the motives and market effects of the increase in holdings by the majority shareholders during the third wave of holdings.First of all,in theory,analyzing the motivation and market effect of holdings,and the related literature is used to find its effect on the relevant variables.Then,describe and analyze the status quo of the two major market's holdings,and find out the background and reasons related to different holdings.Finally,empirical analysis is used to analyze the motives and market effects of holdings by major shareholders.The analysis of the motivation of overweighting follows the logical thinking of first and second groups,focusing on the analysis of the differences in the incentives of state-owned enterprises and private enterprises to increase their holdings.At the same time,the stability test is used to ensure that the empirical results are stable and reliable.The empirical evidence of the market effect of overweighting mainly adopts the event research method to test whether the market has market effects,and uses multiple linear regression to analyze the influencing factors of different event window periods.At the same time,independent sample T-test,descriptive statistical analysis and trend chart are also used.Analysis,to make the empirical results more abundant.Through theoretical and empirical analysis,this paper has obta ined the following conclusions:(1)There is a certain incentive for investment to increase the shareholder's holdings.The increase in shareholding does not take into account the company's operating conditions.However,considering the degree of underestima tion,the proportion of underestimated and more serious holdings increases.The intention of stabilizing the stock price is obvious.The earlier the announcement,the more depressed the price trend is,and the larger the proportion of holdings;the purpose of steady control is to maintain the leading position and maximize their own interests.(2)Compared with private enterprises,state-owned enterprises pay more attention to the value underestimated.State-owned enterprises pay more attention to the trend of stock prices in the early period,which shows that state-owned enterprises care more about the stability of the market than private enterprises;the poorer the profitability of private enterprises,the stronger the incentive to increase holdings,and the more private enterprises Paying attention to the leading position of the company's holdings,the motivation for controlling control rights is very strong.(3)There is indeed a positive and significant market effect for the increase in holdings of major shareholders,and this effect still has a certain degree of persistence,indicating that the over-reaction effect of the market exists;investors only focus on whether or not to increase holdings and who increases their holdings.Holding the event itself is not concerned.(4)The nature of the company has a significant effect on the market effect.The market effect of SOEs is significantly stronger than that of private enterprises;the larger the shareholder holdings,the shorter the market reaction is,the weaker it may be,the market in our country is filled with too many false ones.Information has led investors to make adverse selections,but believes that companies with low holdings ratios are relatively low;there is no correlation between the company's operating performance variables and market effects;the more the company's value is seriously underestimated,the more significant the market effect of holdings increases.The market's information transmission hypothesis exists.Through summarizing and analyzing the above conclusions,the following suggestions are put forward in light of China's actual situation:(1)Major shareholders can use the measures of overweight to guarantee the stability of personal wealth.When the value of the company is undervalued,major shareholders can use the measures of holdings to send the market a positive signal that the company is undervalued and has good prospects for future development.This will attract market investors to buy and trigger positive market effects.(2)External investors should carefully identify the motivation for holdings,focus on the information on holdings issued by high-quality companies,and allocate the investment to those companies whose value is undervalued and whose operating performance is stable and whose major shareholders increase their holdings,in order to achieve their own wealth accumulation.(3)The government guides state-owned enterprises and index companies to increase their holdings to stabilize the market.By negotiating,guiding,or issuing administrative orders,the government actively guides state-owned enterprises or index stock companies to actively participate in the plan for stabilizing the market and can promote the stability of the stock market.(4)It is imperative to deepen the reform of the market management system.It is inevitable that major shareholders use individual superiority to harm the interests of small and medium shareholders.It is necessary to establish and improve relevant laws and regulations and perfect related systems to effectively protect the interests of small and medium investors.