Research On Cash Behavior Of Controlling Shareholder Of LETV

After 2000,the issue of agency of major shareholders and other small and medium shareholders has gradually been valued by the academic community.Especially in China,the capital market is still not perfect,the legal system is still not perfect,and the cases of major shareholders infringing the interests of small and medium shareholders are not uncommon.After the equity market share reform in 2005,the state formulated new legal provisions for some major shareholders to harm the interests of other small and medium shareholders,reducing the occurrence of past violations.However,over time,the major shareholders of some companies have adopted a more subtle way to encroach on other shareholders’ rights in order to maximize their own interests and evade legal sanctions.The study found that LeTV’s major shareholder reduction is a new case of infringement of small and medium shareholders.LeTV established an ecosystem of “platform + terminal + content + application” with user-centeredness by setting up complex pyramid enterprise groups.LeTV has created a high-growth illusion by creating concepts and complex related transactions,raising the public’s expectations for the company’s development and profitability,and pushing up the company’s stock price.The major shareholders are pledging at high positions,reducing their holdings,and passing the risks on to small and medium-sized enterprises.Shareholders and other stakeholders have caused huge losses for investors,while Jia Yueting,the controlling shareholder,has made a lot of money.Due to the lack of profitability,LeTV is difficult to sustain rapid development,but the major shareholder Jia Yueting has invested LeTV’s limited resources into the profit-seeking LeEco ecological construction,but he has cashed in through the reduction and pledge when LeTV is prosperous.When Jia Yueting’s reduction came to an end,LeTV began a serious cash flow crisis and continued to suffer huge losses.Therefore,LeTV’s ecological circle is more of a temporary creation of a false prosperity,creating favorable conditions for large shareholders to reduce the price of high premiums.Therefore,LeTV’s ecological innovation is actually an ecological scam,a new way to infringe the interests of small and medium shareholders.This paper first reviews the principal-agent theory and the hollowing-out theory,and then proposes a new short-selling viewpoint.Taking Lexmark.com,a listed company of the GEM star,as an example,it studies the development of LeTV and its financial reports,analyzes the reasons for the LeTV crisis with a new perspective,and finally proposes the capital market from the perspective of protecting the interests of small and medium investors.policy suggestion.This paper is divided into six parts,trying to try to conduct some research and discussion in the following aspects.Chapter One Introduction.This chapter mainly introduces the background of the topic and puts forward the problems to be discussed in this paper,as well as the research purpose and significance of the article.At the same time,it briefly expounds the research ideas and content framework of this article,and the possible innovations and shortcomings of the article.Instructions are given.The second chapter: theoretical review and literature review.This chapter mainly reviews the hollowing theory and summarizes the previous literature,providing theoretical support for the following hollowing theory.Starting from the traditional hollowing out theory,this paper discusses the current short-selling situation of the capital market,and proposes a new short-selling viewpoint on the phenomenon of large pledge and reduction of large shareholders in the capital market,further enriching the short-selling theory.The third chapter: the prosperity and development of LeTV.This chapter introduces the development of LeTV.It also introduces several typical aspects to highlight the prosperous scene of LeTV.It shows the fast-developing LeTV system and the powerful LeTV.After that,it introduced the continuous set of current shareholders of LeTV.The fourth chapter;the analysis of the controlling shareholder cashing method and the current set of evaluation.This chapter introduces the specific cash-out method of the shareholders of LeTV.Then it analyzes the reasons and influence of the controlling shareholder’s cash-out,and speculates on the short-selling purpose of LeTV’s construction of the ecological circle,and proposes a new short-selling viewpoint.Chapter 5: Case summary and policy recommendations.After the discussion of the first five chapters,this chapter summarizes the content of the full text,and proposes policy recommendations from the perspective of protecting the interests of small and medium-sized investors in the typical case of LeTV.The research findings in this paper provide a new perspective and evidence for the study of hollowing out theory.More importantly,in the context of mass entrepreneurship and innovation,the research results of this paper are important for how to curb the false high-tech enterprises to innovate and construct the ecological circle to short the listed companies and strengthen the protection of small and medium-sized investors.The practical significance.