The Effect Of Large Shareholders' Holding Increase: A Study On Wealth Effect And Corporate Performance Effect

Before the reform of the shareholding structure,the state shares and legal person shares can not circulate in the secondary market.Major shareholders rarely care about changes in stock prices and seldom buy more shares in the capital market.After the share reform,the interests of the major shareholders are linked to the stock price.More and more shareholders are starting to raise the stock price through the overweight.In 2008,2012 and 2015,the capital market witnessed an irrational decline,investor sentiment was sluggish and trading volume shrank.In order to stabilize the stock price and prevent a systemic crisis triggered by the stock market,the CSRC led by the CSRC issued several bills Encourage large shareholder holdings,triggering many upsurge of holdings.In practice,there are more and more shareholders holding events.Only a few scholars pay attention to this field in theoretical research.This article studies the holdings of large shareholders from the perspective of virtual economy and substantial economy of substantial shareholder holdings and expects to enrich the relevant theoretical research to provide reference for national policy making,corporate market actions and investors' investment decisions With advice.In the aspect of fictitious economy,this paper mainly studies the secondary market effect of the increase of major shareholders,examines the changes of stock prices after the increase of large shareholders,and seeks whether the increase of majority shareholders can reap the wealth effect.At the real economy level,this paper mainly explores the changes of corporate performance after the increase of major shareholders.Finally,combining the virtual economic level with the real economy level,the paper further excludes the motivation and truth behind the increase of large shareholders by comparing the relationship between wealth effect and corporate performance.Based on theoretical analysis and empirical test,this paper obtains the following conclusions: At the secondary market level of the virtual economy,both the state-owned listed companies and the non-state-owned listed companies,the majority shareholders can gain wealth effect.At the level of real economy,for the state-owned listed companies,there is not much change in the performance of the major shareholders after the increase of the majority shareholder.The correlation between the wealth effect and the performance of the company is small.The increase in the shares of the company increases the stock price in line with the regulatory authorities and stabilizes the stock market purpose.For the non-state-owned listed companies,the significant shareholder performance after the increase of holdings,the wealth effect and corporate performance is positively correlated,indicating that the purpose of its holdings more out of the investment value of undervalued stocks and strengthen the control of the company.