A Study On The Motivation And Impact Of Focus Media's Major Shareholder Reduction

The system of split share reform implemented in China has changed the profit mode of the large shareholders of the listed company.Their profit way began to turn to the stock market before relying solely on the company,and the profit has gradually become a joint decision by the stock market and the listed company.However,the securities market in China is still in the stage of development,the relevant laws and regulations are not perfect,and the information in the market is also asymmetrical.This enables large shareholders to sell stocks to gain more profits before they know the company's bad management ahead of time,rather than actively finding and solving company problems.This behavior of large shareholders not only damages the reputation of the company,but also brings negative effects to the development of the company.At the same time,it also makes many small and medium-sized shareholders lose confidence in the securities market,which is not conducive to the orderly development of the market.In many of the listed companies,the company's largest shareholder F reduction can be used as a typical case,since 2017,the major shareholder of the company frequent large transactions,the share price of change radically.Based on this,this paper based on the principal-agent theory,asymmetric information theory and corporate governance theory and other related theories,choose F company as an example,reducing the opportunity and motive of shares held by major shareholders of the hands of behavior analysis of F company,as well as the influence of reduction effect,the conclusion and enlightenment.In the process of the study,this paper firstly explains the related concepts and theories of the holdings of major shareholders,the basic situation of F company,the holdings of major shareholders of the development and reduction of the institutional background and market are analyzed;and then analyze its holdings of major shareholders behavior motivation,motivation of large shareholders found surface F the company's holdings of behavior is to alleviate the shortage of funds of the company,the actual motivation is in the condition of information asymmetry,F company's existing business model,development prospects and investment projects are a series of problems,large shareholders to obtain excess income arbitrage as well,in this process,the reduction is accompanied by a period employee equity incentive,equity issuance rights and a series of behavior,large shareholders that F shares the company a lot less reason is not disclosed in the announcement that at the end of this paper using the related mode;The influence of the reduction of the large shareholders on the market,the development of the enterprise and the shareholders is analyzed.Based on the above research,we find that a stable and healthy development of listed companies must have a good and effective internal governance structure.Only the management layer within the company is bound to each other,and the company can develop in the long run.In addition,the relevant units should strengthen the construction of the relevant regulations on the pre disclosure of the large shareholders' reduction behavior,and improve the deficiencies.At the same time,the laws and regulations to protect the interests of small and medium shareholders should also be perfected.