Large Shareholder’s Heterogeneity and Loss Reversal of Listed Companies—Evidences Based on Loss Listed Companies in China from 2005 to 2008

Abstract

This paper studies the effect of the heterogeneity of major shareholders of listed companies in China on the loss reversibility after they occur loss.The empirical results show that in the sample of all the losses listed companies, the extent of loss reversal occurred of non-controlling shareholders of listed companies after loss was significantly higher than the losses listed companies of controlling shareholders, that have dispersed ownership and validity checks and balances to shareholders of listed companies to make proactive in losses after losses, but even larger losses reversed, the losses of state-owned controlling shareholders of listed companies and the loss of other listed companies, the largest shareholder of the loss of state property, the largest shareholder of listed companies and the loss of other property companies listed on the extent of the loss is not significantly reversed.