Information Transfer between Major Shareholders and Company Value Reduction

DOI

10.2991/sser-18.2018.12How to use a DOI?

Keywords

Major shareholder reduction; Corporate value; Insider trading; Information transfer

Abstract

Based on the data of all the announcements released in the A-share market from 2012 to 2016, this paper empirically studies the relationship between the reduction of major shareholders and the valuation of the stock of the enterprise. Through regression analysis, we find that there is a positive correlation between the reduction of major shareholders and the value of Tobin Q. Through further classification tests, this paper finds that the reduction of non-state-owned major shareholders can better convey the overestimation of enterprise value Similarly, compared with a natural person shareholder, the reduction of non-natural person major shareholders is also more able to convey the information that the enterprise value is overvalued. This paper suggests that investors can refer to the reduction of non-state-owned nature of large shareholders and large shareholders of non-natural person nature to assess the value of the enterprise and support investment decisions.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zhongfu Yu
AU  - Jing He
AU  - Yalong Liu
PY  - 2018/05
DA  - 2018/05
TI  - Information Transfer between Major Shareholders and Company Value Reduction
BT  - Proceedings of the 2018 8th International Conference on Social science and Education Research (SSER 2018)
PB  - Atlantis Press
SP  - 56
EP  - 63
SN  - 2352-5398
UR  - https://doi.org/10.2991/sser-18.2018.12
DO  - 10.2991/sser-18.2018.12
ID  - Yu2018/05
ER  -