Proceedings of the 2018 8th International Conference on Social science and Education Research (SSER 2018)

Information Transfer between Major Shareholders and Company Value Reduction

Authors
Zhongfu Yu, Jing He, Yalong Liu
Corresponding Author
Zhongfu Yu
Available Online May 2018.
DOI
https://doi.org/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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Volume Title
Proceedings of the 2018 8th International Conference on Social science and Education Research (SSER 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
May 2018
ISBN
10.2991/sser-18.2018.12
ISSN
2352-5398
DOI
https://doi.org/10.2991/sser-18.2018.12How to use a DOI?
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/).

Cite this article

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  - https://doi.org/10.2991/sser-18.2018.12
ID  - Yu2018/05
ER  -