The Study Of Accounting Manipulaion In The Behavior Of Major Holding Shareholders’ Illegal Reduction Of Stocks

In recent years,China’s major shareholder of listed companies have continued to reduce their shareholdings.Major shareholders are the actual controllers of the company and they own the information advantages and ability to manipulate information.So they can affect the company’s stock price.When major shareholders appear to gain cash on the motivation to reduce their holdings,they will use their own advantages to reduce their holdings through the manipulation of accounting information.This behavior undermines the interests of small and medium shareholders,but also has a negative impact on capital market.Therefore,this article chooses to study the specific accounting manipulation problems in the behavior of major shareholders to reduce holdings.First of all,through the statistical analysis of 33 listed companies that have been punished by the large shareholder punished by the China Securities Regulatory Commission in the past five years,it has been found that large shareholders often polish main business income,costs and expenses,accounts receivable and inventory.Secondly,a representative company,Shandong Molong Company,which was issued by the China Securities Regulatory Commission with a high price penalty,was selected as a case study.The analysis of its public information revealed that the company will also conduct that manoeuvring during periods of cost,R&D investment,and cash flow are also be used to achieve the purpose of performance modification.