A Comparison of Ownership Structure and Announcement Effect and Model Analysis on Stake-rising Motivation

In this paper,the largest shareholders,non largest shareholders and executive have obvious announcement effects.Before the announcement day of stake-raising of the largest shareholders and non-largest shareholders,the cumulative abnormal stock returns are significant,but the cumulative abnormal stock returns are not significant before the announcement day of stake raising of executives.As for the motivation of the stake rising analysis,the largest shareholders will consider stock volatility,the degree of valuation and outside shareholders,while non-largest shareholders are based on short-term behavior of abnormal stock returns.Different from the existing research,in this paper,we find that the corporate performance is negatively correlated with stake-rising rate of the largest shareholders,but stake-rising of the largest shareholders can optimize the corporate ownership structure and promote corporate future performance.