Research On The Reduction Of The Shareholders Of Shandong Molong

The reduction of shareholding by major shareholders has transformed the mechanism for the realization of shareholders' interests from a non-market-base d approach to a market-oriented approach.As an insider of a listed company,large shareholders,especially controlling shareholders,can create favorable oppo rtunities for reduction.In recent years,the frequent occurrence of major shareh olders' malicious reduction of shares in listed companies has had an impact on the stable and healthy development of the stock market,and has also made t he major shareholders of listed companies a special concern.In 2016,China S ecurities Regulatory Commission issued “Several Provisions on the Major Share holders and Directors of Listed Companies to Reduce Shareholdings”,but since then,the securities market has seen “precision reduction”,“bridge reduction” and “clearance reduction”.Waiting for new issues;In 2017,the China Securiti es Regulatory Commission issued a number of rules and regulations such as "Regulating the Large Shareholders of Listed Companies and the Behavior of D irectors and Supervisors".Shandong Molong(H-share code: 00568,A-share code: 002490)is a partn er of China's four major oil groups and one of the large suppliers of PetroChi na's Class I products.From the end of 2016 to the beginning of 2017,Shando ng Molong Holdings shareholders concentrated on two reductions in less than one month,and issued a revised performance announcement after the second re duction,which will be attributed to shareholders of listed companies in 2016.I t is estimated that the net profit will be adjusted from 6 million yuan to 12 million yuan to an estimated net loss of 480 million yuan to 630 million yuan.Through combing the system related to the reduction of shareholders' share holding behavior in China,based on market timing theory,opportunistic behavi or theory and tunneling behavior theory,this paper finds that Shandong Molon g controlling shareholders exist through earnings management,information discl osure,and opportunity reduction.And other means to seek personal gain.First of all,the major shareholders of Shandong Molong use their own information advantages to influence the frequency and quality of information disclosure be fore the reduction,and make timely disclosure of favorable news to delay the disclosure of negative news;the majority shareholder adopts the method of earnings management to cater for its reduction Behavior,using the strategy of acc rued project earnings management and real earnings management to create a g ood opportunity to reduce stocks;large shareholders can obtain excess returns after reducing their holdings,the cumulative excess return rate shows a rapid d ecline after the reduction,the market's reduction to major shareholders The beh avior has reacted negatively.The research in this paper enriches the case study of the major shareholder's reduction behavior,and also provides a new idea f or stakeholders to identify the major shareholder's reduction behavior of listed companies.