Study On The Motivation And Economic Consequences Of The Reduction Of Large Shareholders Of GEM

Since the first batch of gem restricted shares lifted,frequent huge holdings,tunneling companies,major shareholders of illegal holdings holdings in the market index continued to decline,emerge in an endless stream,the interests of small shareholders infringed.Based on this,this paper will be of major shareholders gem holdings motivation and economic consequences of the two aspects the problem of case study together.By analysis,the gem holdings mainly exist in the following four ways:(1)GEM companies with high growth,high technology has huge financial pressure and high financing costs,and those problems would lead to some large shareholders holdings of shares to obtain funds from the capital market to keep the enterprise sustainable development.(2)GEM companies controlling shareholder,the market for corporate valuation,manipulation of information pulled the stock after a large-scale reduction so as to obtain abnormal returns to the GEM market.(3)The presence of a large number of venture capital institutions figure,their mode of operation is to help listed companies and A reduction of risk to obtain investment income.(4)Because of the capital market supervision system and punishment mechanism is not perfect,small investment risk of illegal trading of high returns,large shareholders in order to obtain their own interests or avoid losses easily choose illegal holdings.This paper selects the case to conduct a comprehensive direct presentation of four cases proved large shareholders gem holdings are not only private benefits,the truth on the interests of small investors,but also directly lead to the negative effect of the subject's two market and refinancing difficult economic consequences caused by long-term negative impact on future development of the enterprise.This paper take the case of large shareholders to reduce the motivation and economic consequences,in the process of writing for case selection,determine the data collection and arguments are extremely cautious,only hope that through a more intuitive way to provide a reference and guidance for small and medium investors,and promote to promote the sound development of the capital market.