An Empirical Analysis of Large Shareholders Overweight and Listed Companies Performance

The behavior that large shareholders of the listed companies increase their shareholdings is a kind of valuable information about corporation value which increases their investors' confidence and meanwhile promotes the company's performance because of the strengthened principal-agent relationship.This paper takes listed companies in China's A stock market whose shareholders have increased their share as research object,and analyzes the main performance indicators of these listed companies before and after their large shareholders overweight.It is found that the large shareholders' increasing share hurts the interests of the shareholders badly instead of promoting the listed company performance.The main reason of it is that the large shareholders overweight is only a short-term market activity.