Analysis On The Motivation And Effect Of Large Shareholders’ Reduction

China has implemented the split share structure reform since 2005,allowing the non-public shares issued by the company’s shareholders to flow in the secondary market,and promoting the transformation of the mechanism for shareholders to obtain benefits.Among them,the fastest and most direct way is to reduce their shares.After the lifting of the ban on restricted shares,the phenomenon of large-scale and malicious reduction of major shareholders of Listed Companies in the capital market began to be common,which seriously interfered with the normal operation of the capital market.In view of this phenomenon in the market and in order to guide shareholders to maintain a rational attitude to reduce their shares,China Securities Regulatory Commission promulgated several provisions on the reduction of shares by shareholders,directors,supervisors and senior managers of Listed Companies in May 2017.After the promulgation of the new regulations,although the chaos of shareholding reduction has been alleviated to some extent in 2017 and 2018,it will not last long.With the recovery of the stock market in 2019,a greater upsurge of shareholding reduction is also starting at the same time,and the healthy development of China’s stock market is affected again.It can be seen that it is imperative to standardize the shareholding reduction behavior of major shareholders of listed companies.Based on the information asymmetry theory and so on,taking Zhangzidao company as a case,this paper studies the motivation and impact effect of the reduction of major shareholders of listed companies.On the basis of summarizing the relevant literature at home and abroad,Firstly,it analyzes the motivation of the reduction of major shareholders in Zhangzidao company from the motivation of the reduction of major shareholders;Then,it analyzes the economic consequences of the reduction of major shareholders from three perspectives: the impact of the reduction on the market response,the company’s operating performance and the company’s value;Finally,according to the impact results,the research puts forward relevant countermeasures and suggestions.Through this study,we draw the following conclusions: first,the motivation of the reduction of Zhangzidao’s major shareholders is mainly reflected in two aspects: one is the expected low performance to obtain the trading opportunity,and the other is the reduction caused by earnings management.Second,the reduction of the major shareholders of Zhangzidao company has caused certain adverse effects on the market reaction,the company’s operating performance and the company’s value.Thirdly,through the analysis of the reduction effect of major shareholders of Zhangzidao company,this paper puts forward corresponding countermeasures and suggestions for the development of stock market,small and medium-sized investors and regulatory authorities,in order to provide some reference and reference for promoting the orderly development of China’s stock market and regulation.