Research On The Motivation And Economic Consequences Of The Reduction Of Major Shareholders’ Holding

Since the completion of the share-trading reform in China,the stock market has entered the era of full circulation.The shareholders of listed companies are able to freely circulate the share of shares held in the secondary market,which greatly enhances the vitality of the stock market and improves the flow of the stock market.Sexuality promotes the continuous development of China’s stock market.However,in recent years,with the slowdown of China’s economic growth,the stock market has been depressed,and the shareholder’s shareholding reduction has gradually deviated from the purpose of active stock market.Under the new situation,the major shareholders will shift their profit focus from the company’s operating performance to the market performance of the company’s stocks.For their own sake,they choose to reduce their holdings in the secondary market and give the original unstable market.Covered with a shadow.The major shareholder of the company even violated the rules in order to reduce profits.For example,by operating the company’s market information and other illegal reductions,it is increasingly flooding the market,bringing certain shocks to the stock market.Therefore,it is a general trend to study the motives and economic consequences of the major shareholder’s shareholding reduction.Regulating the shareholder’s holding reduction behavior is the top priority.This paper studies the major shareholder reduction of the company,distinguishes the types of major shareholders,studies the real motives of different types of major shareholders,and the economic consequences of reducing the holdings,Focus on the differences in economic consequences brought about by the new drivers driving the reduction of shareholder rights.The results of the case analysis show that there are any major types of shareholders in the rallies reduction;the large shareholders of legal person investment will be affected by their own financial status,and their financial statements will be beautified by the reduction of holdings;The company controlling shareholder will consider the needs of the company’s comprehensive development,introduce strategic investors and support employee stock ownership plans by reducing shareholdings.Using the event research method and the EVA index analysis method to further analyze the economic consequences of the reduction of the majority shareholder of the company,and found that the strategic share reduction relative to the controlling shareholder,the non-controlling majority shareholder’s continuous disorderly reduction The negative impact of the company is greater,the company’sstock price and corporate value decline,and the minority shareholders’ equity is obviously damaged;the controlling shareholder has a strategic reduction,and the company’s income increase and expenditure effect is obvious,but the positive market effect brought by the company is large.The impact of shareholders’ continuous reduction of holdings is also weak.Finally,this paper proposes to regulate the behavior of controlling shareholder reduction from three levels of shareholders,enterprises and government supervision.Through the research on the motives and economic consequences of the major shareholders of the case company,it is not only beneficial for market regulators to better formulate the reduction policy and maintain market order.The management of the company can also identify the risks that exist in the development and benefit the company’s continued stable operation.It can also provide planning strategies for major shareholders to reduce their holding and reduce the negative effects of reducing holding.