The Protection Of Minority Investors In The Share Reduction Of Major Shareholders

Since China's capital market gradually completed the reform of non-tradeble shares,the non-tradable shares of listed companies began to enter the market,and the Chinese stock market has entered the era of full circulation.Then the problem of the reduction of the shareholder's shareholdings and the stock price manipulation arise,which have plagued the healthy development of China's securities market for a long time.However,in the current stock market,in order to maximize their own interest,some major shareholders of listed companies adopted some means of stock price manipulation.One of the typical means is to attract minority investors to participate in market speculation by releasing information of high stock dividend,so the major shareholders can sell their stocks in a higher price.This is actually a frantic violation of the interests of minority investors,and violates the fair and open principles of the securities market.If this means of stock price manipulation is prevalent in the stock market,then the stock price will deviate from its real value.And the steep fall in price after the reduction will also result in the loss of the interests of the minority shareholders.In the long run,it will inevitably hit the investment enthusiasm of minority investors,which is terrible for the China's stock market.This paper takes Tianlong Group as a case to study the stock price manipulation behavior of major shareholder reduction.It finds the motives of major shareholder reduction and the performance of loss of the interests of the minority shareholders,and analyzes the causes of the damage of them.Finally,in order to protect the interests of small and medium investors better,this paper puts forward the corresponding policy recommendations according to the research results in this paper.The full text of the paper can be divided into seven chapters:The first chapter is the introduction of this paper,and introduces the background and significance of this paper in detail.It also introduces the research content and research methods of this paper,and finally summarizes the innovation and contribution of this paper.This part is the guide of the overall thinking in the full text.The second chapter is a literature review,which mainly starts from researches of the motive of share reductions by major shareholders,the subjective and objective conditions of major shareholders' reduction,and studies the relationship between the reduction of major shareholders and the company's operating conditions.Finally,it sorts out the relevant literatures about the relationships of major shareholders' share reduction and the protection of minority investors.The third chapter is the theoretical analysis.This part first introduces the relevant theoretical basis,including principal-agent theory,and other famous theories like information asymmetry theory,signal transmission theory.And then this paper analyzes the reasons why current major shareholder reduction in China can cause the damage of the interests of minority shareholders.The fourth chapter is the analysis of current situation of major shareholder reduction of listed companies,high stock dividend and related regulatory policies.In the study of regulatory policies,the relevant policy research is divided into two parts before and after the event of major shareholders' reduction.The fifth chapter is the case background.It introduces the reason why this paper choose Tianlong Group as the research case,and introduce the event of share reduction of the major shareholder in Tianlong Group and analyzes the motivation of this reduction.The sixth chapter is case analysis.It analyzes the damage of the interests of minority shareholders,and analyzes the reasons for the damage of their interests.The seventh chapter is the conclusions,suggestions and prospects of this study.This part summarizes the previous analysis of this paper and draws conclusions.It makes suggestions to the listed companies,minority investors and the regulating authorities.Finally,this paper clarifies the inadequacy of this research,and expected the further research in the future.The innovations in this paper are as following.First,this paper has added relevant researches on the share reduction of major shareholders in listed companies.In recent years,the number of reductions in listed companies has been increased,and many major shareholders want to reduce their holdings.These have caused a series of problems which caused the attentions of scholars and the regulatory authorities.However,there are relatively few case studies on the protection of the interests of minority investors in the reduction of holdings.This paper is expected to add the researches in related fields.Secondly,the case of Tianlong Group is representative,so the suggestion is useful for other researches,and the conclusions can be applied to the future research on the protection of minority shareholders' rights and interests.There are still many drawbacks in this paper.Firstly,there is little research about how the shareholder reduction of large shareholders can harm the interests of minority investors and the appearances of their loss of interests.Secondly,this paper chooses Tianlong Group as the case study object,which belongs to a single case study.Although the case is representative,but the conclusions based on this research still may lack the universality.Third,the policy recommendations in this paper on how to reduce the damage of minority investors resulted by major shareholders' reductions are still lack of operability.