Open AccessThe Relationship between Social Responsibility and Majority Shareholders’ Stock Selling: Considering the Mediation of Investors Tendency
Author(s) -
Chuan Lin,
Huan Chang,
Haiyong Zhu
Publication year - 2018
Publication title -
journal of business theory and practice
Language(s) - English
Resource type - Journals
eISSN - 2372-9759
pISSN - 2329-2644
DOI - 10.22158/jbtp.v6n1p12
Subject(s) - shareholder , business , stock market , corporate governance , stock (firearms) , equity (law) , monetary economics , corporate social responsibility , social responsibility , accounting , finance , economics , law , paleontology , horse , political science , engineering , biology , mechanical engineering
Based on the research object of majority shareholders’ stock selling at the post period of equity division reform, this paper takes 8019 A-share listed companies in Shanghai and Shenzhen stock market from 2007-2013 as sample, empirically analysis the relationship between social responsibility and majority shareholders’ stock selling, and consider mediation effect of the investor tendency. The study found that from the point of internal governance effect, the better of social responsibility, the lower possibility of majority shareholders’ stock selling. At the same time, the lower of market reduction premium, the lower possibility of majority shareholders’ stock selling, after considering the influence of investors’ tendency, the inhibition effect of social responsibility will be magnified, which means securities market identity with the inhibition effect that comes from the social responsibility caused by listed companies’ internal. Further study found that majority shareholders will avoid stock selling during the period of the social responsibility reporting, and market investors will hold different attitudes toward majority shareholders for their first and continuous stock selling, and on their view, continuous stock selling is a “bad” event.