Circulation Right Pricing, Reform of Equity Separation and Protecting Public Investor Interests
|School||Sun Yat-sen University|
|Keywords||Circulation right Equity separation Public investor Consideration|
The reform on equity separation, is a revolution of the field of circulation on our country stock market, and protecting public investor’s interests is the base of stock market development, this paper carry on exposition by using circulation right pricing theory on the course of the reform of equity separation , in order to protect the public investor’s interests .Firstly, this paper has compared asymmetrical benefit between circulating shareholder and the non-circulating shareholder. Through analyzing the 3 aspects’factors of public investor’s benefit : the unfair relation trade , the bubble of the stock market and secondary equity offering , it has been confirmed that equity separation is the major factor of influencing public investor’s benefit;Secondly, the circulation right pricing theory has been summed up , so we have put forward the concept of external circulation right value and internal circulation right value , adopt the empirical method of certificate appraise circulation right value which is priced by option pricing formula, it has been employed in the calculation of consideration level of equity separation, and has offered theoretical foundation for consideration level of equity separation; Additionally, we still analysis factors of the reform of equity separation influencing public investor’s benefit by sampling survey;Thirdly , we have analyzed these factors of the reform of equity separation influencing public investor’s benefit in equity structure , equity value and investment profit, so we gain the result of changing equity structure and equity value , but not changing investing profit; By the empirical analysis ,it is still discovered that equity structural change and market circulation are the major factors which influences public investor’s benefit ,but consideration level and share ballot mechanism have not large influence from public investor’s benefit.