Research On The Motives, Abnormal Return And Effect On Stock Price Of Listed Companies' Large Shareholders Reduction Of Stocks

On the background of more restriction and supervision on large shareholders reduction of stocks by CSRC and stock market crash in 2015,this study makes the research on the motives,abnormal return and effect on stock price of listed companies' large shareholders reduction of stock in our country to solve three problems,that is,what kinds of large shareholders or listed companies may lead to reduction of stock,whether large shareholders take advantage of insider information to gain excess earnings in the process of reduction of stock and what kind of influence large shareholders reduction of stock may make on stock price.The study uses logistic regression model and event study in empirical research.The result shows that non-majority large shareholders have greater possibility to reduce stock and higher ownership concentration or smaller company size may increase the possibility of large shareholders reduction of stock.Furthermore,I find that tunneling and principal-agent problem are evident in our country.Through the division on market form or kinds of large shareholders in event study,the study finds that large shareholders have insider information advantage and are able to accurately choose the time of the greatest excess earnings to reduce stock,which makes negative influence on stock price.Through the market forms,the negative influence will disappear quickly in bull market,but will exacerbated the market panic in bear market.Through the kinds of large shareholders,non-majority large shareholders have greater excess earnings and may lead to greater negative influence.Besides,strategic investors have greater insider information advantage than financial investors.The study tries to provide theory evidence of supervision for CSRC,provide investment consultancy for investors and prove classical theories such as tunnel theory and signaling theory in the field of Chinese listed companies,making great contribution to our countries' corporate governance.