The Case Study Of The Major Shareholders' Stock Reduction--Guangdong Alpha Animation And Culture Co.,Ltd

In recent years,the vigorous development of China's capital market has also spawned a series of behaviors that disrupt the order of the capital market,such as bridge reduction?precise reduction and clearance-type reduction,which not only infringe on the legitimate rights and interest of investors,especially small and medium investors,but also hinder the standardized management of listed companies and disrupt the order of the secondary market.The shareholding reduction system of listed companies is an important basic system in the capital market.In order to prevent the capital market chaos from blocking the development of national macro economy and the real economy,Chinese government has gradually strengthened its supervision over the securities market.CSRC issued the Several Provisions of Shareholders and Directors of the Listed Companies to Reduce Shareholdings on May 27,2017.This new regulation aims to restrict some shareholders from reducing their holdings through large-scale transactions.The issue of new regulation symbolizes that the capital market becomes more regulated.However,China's securities market is not perfect,relevant laws and regulations still don't cover all fields,the ways of the capital operation are various.At present,the effect of the new rules is still unclear,major shareholders may still rely on information advantages to obtain excess earnings by exploiting loopholes in the regulations through capital operation.It can be predicted that with the strengthening of supervision,the operation mode of reducing holdings of major shareholders will be more hidden and complex,besides,the difficulty of supervision,early warning and risk prevention may be further upgraded.This game of cat and mouse will be more exciting.Based on the tunnel behavior theory,principal-agent theory and information transmission theory,this paper chooses ALPHA as a specific case to analyze the motivation,implementation method and effect of ALPHA's large shareholders' behavior of reducing large-scale of the holding of shares.There are six parts in this paper.The first part is the introduction,which mainly introduces the research background and summarizes the research status of domestic and foreign scholars on the motivation,implementation method and market reaction of the reduction of major shareholders and introduces the research ideas and methods of this paper.The second part is the theoretical overview of major shareholders' reduction behavior.This part introduces the definition and relevant legal provisions of major shareholders' reduction behavior.The third part is the case introduction of the reduction of ALPHA's major shareholders.This part introduces not only the general situation of ALPHA,but also the market environment,operating conditions and financial conditions before the reduction of shareholdings.The fourth part introduces the process of major shareholders' shareholdings reduction,including the disclosure of information,specific holdings scheme and other matters related.The fifth part is the effect analysis of the reduction behavior of ALPHA major shareholders,this part mainly analyzes the influence on the company's financial index,non-financial index and shareholders.The sixth part is divided into research conclusions and enlightenment according to five parts before.This paper analyzes the motivation,implementation method and economic consequences of the shareholding's reduction on the basis of ALPHA.The paper finds that the real goal of large scale holding reduction of ALPHA's major shareholder is to get excess returns,not purely relieve the shortage of company funds as announcement,although this way to a certain extent reduces the pressure on the company's funds,we found that the positive impact is limited through the financial data analysis.Shareholding reduction of major shareholder damages the interests of small and medium-sized investors,hits the market investment confidence,it cannot improve the enterprise value and operating performance significantly.This paper finds that if listed companies want to develop steadily and healthily,they must have a good and effective internal corporate governance structure.Only when the various management within the company are mutually constrained,the company develop in the long run.In addition,relevant units should strengthen the construction of pre-disclosure regulations for major shareholder reductions and improve their deficiencies.At the same time,laws and regulations protect the interests of small and medium shareholders should also be improved.