Study On Reductionand Tunneling Behaviors Of Major Shareholders

This paper takes the reduction of holdings of Tongzhou Electronic's major shareholders as a case to analyze the problem that the major shareholders infringe on the interests of small and medium shareholders through the way of reduction.The selected cases occurred in the era of full circulation of China's capital market.During this period,the major shareholders of listed companies frequently reduced their shareholdings.Among them,there were many violations of the behaviors of small and medium shareholders.The regulators continuously issued policies to regulate the reduction of major shareholders.This article is based on the previous research on major shareholder reductions and short-selling issues,including reductions in incentives,tunneling methods,and tunneling effects.It is supported by classic theories of principal-agents,information asymmetries,and benefits of control rights.Quantitative analysis methods and case analysis methods provide a comprehensive analysis of the case of this article.In the case of this article,the major shareholders of listed companies used the concepts of speculation,earnings management,manipulation of information disclosure and other means to push up the stock price,and to carry out clearance reduction through insider trading,"arbitrated" agreements,and other means of transfer.This kind of behavior infringes on the interests of small and medium shareholders,has a negative impact on corporate image and operations,and reduces the effectiveness of the capital market.After in-depth analysis of the case,the paper finds that the causes of such acts mainly include three aspects: firstly,the corporate governance structure is irrational;secondly,the regulatory system is not perfect;thirdly,there are defects in the protection system for small and medium investors.Based on the above issues,this article puts forward policy recommendations in improving corporate governance structure,increasing the punishment of violations,regulating the pledge of major shareholders' stocks,perfecting the information disclosure system of listed companies,and perfecting investor protection systems,etc.,in order to standardize the behavior of major shareholders in the capital market in China..