Study On The Motivation And Consequence Of The Company's Founder's Reduction

The reform of equity-based separation gives non-tradable shares the right to circulate in the secondary securities market,changing the shareholders' profit method,so that the shareholders can obtain profits by reducing their holdings.At the same time,in recent years,the economic environment has big impact on the industrial development,enterprise's development is facing a new wave of reform tide,requiring for further technology,enterprise management mode and organization structure reform and innovation.Facing the complex economic environment,investors just want to get out and start reducing their shares to get cash flow.Even the founders of some listed companies have reduced their holdings dramatically.At present,the domestic scholars research on shareholders motivation and consequences of reduce holdings focuses on "big shareholders",ignoring distinguish the "founder" consequences of this specific subject holdings.In addition,the research on the motivation and consequence of the reduction of shareholders is mainly carried out in theoretical research,the research on case analysis is relatively lack.This paper is based on the above two points.This paper take the comparative analysis between major shareholders and founder of reduction motivation and consequences as a breakthrough point,using the methods of theoretical research and case analysis,finding the deep reason behind and the consequences of the founder reduction,and the related conclusion is given in the last part.This paper includes six chapters,the first chapter is the introduction part,mainly described this paper,we study the background and significance of this paper,and the the present situation of the founder reduction,the research ideas and methods,this part is the environment base of the paper.The second chapter is the literature review section,which is a systematic review of the theoretical research on the transaction of insider trading and the reduction of major shareholders.The third chapter is the part of founder definition and theoretical analysis,defining the founder and founder reduction concept in detail,illustrating the hollowed theory,asymmetric information theory and control theory,these theory as the basis of this article;This part focuses on making a theoretical analysis framework about the motivation and consequences of the founder's reduce shares.The fourth chapter is the case of YDD group founder reduce shares,this part of YDD group founder shareholders reduction and the background are introduced,describes the seven times YDD group founder shareholders reduction.Chapter 5 is about the motivation and consequences analysis for founder of the YDD reduction,this part summarizes on the basis of the condition of the listed company holdings,founder reduction characteristics of the YDD group,combined with the theoretical framework of reduction,making deep analysis of YDD group founder shareholders reduction motivation and consequences.The sixth chapter is the research conclusion part,through the theoretical analysis of the founder reduction,and combining with the study of the founder reduction case of YDD group,the relevant conclusions are drawn.In this paper,the study found that the founder of large-scale reduction in listed companies not only reflects the founder psychological motivation,also reflects the insider status,they do have the ability and opportunity to grab a lot of interests from listed company;In addition,this paper also found that as an important participant,the founder is very important in the corporate governance and their reduction will triggers the corresponding corporate governance issues,will produce a certain negative impact on corporate performance,increasing the risk of enterprise operation,the negative effect mainly by the change of the company's key management person and the choice of assignee that damaging the stable development of enterprises.In the process,the company's governance mechanism and strategy will have greater adjustment after the founder left.