Case Analysis Of Continuous Reduction Of Major Shareholders In Palm Technology

After the implementation of the split share structure reform in China,the profit-making methods of the major shareholders of the listed companies in China have changed greatly.Their profit-making methods have gradually changed from relying solely on the company to making profits from the securities market.Therefore,the listed companies and the securities market together determine the amount of profits.China's securities market is in a steady development stage,and the relevant legal provisions of the securities industry are still imperfect.Information asymmetry also exists in the securities market.Therefore,if the major shareholders perceive the company's poor operation earlier,they will not take the initiative to solve the company's operating problems,but to sell a large number of stocks in order to seek more profits,such reduction of the company's credibility has caused damage to the company's development has had a negative impact,not only that,a large number of domestic companies.Small and medium-sized investors gradually lose their investment confidence,which is un favorable to the development of the stock market as a whole.Based on the principal-agent theory,corporate governance theory and information asymmetry theory,this paper chooses Palm Technology as a case to analyze the reasons and the corresponding consequences of Palm Interest Technology shareholders' reduction behavior,and draws relevant conclusions.Firstly,this paper introduces the background and significance of the study,summarizes the motivation of the large shareholder's reduction behavior and its market reaction at home and abroad,and introduces the research methods and research ideas of this paper;secondly,this paper introduces the theoretical knowledge related to the large shareholder's reduction behavior,including the large shareholder's reduction.The specific definition of shareholding behavior,the motivation and timing of large shareholders' reduction behavior,the impact of shareholding reduction behavior on shareholders' wealth and relevant laws and regulations;then,taking the shareholding reduction of large shareholders of palm science and technology as a specific case,the paper introduces the ownership structure,financial status and operation status of palm science and technology before the shareholding reduction of large shareholders.This paper expounds the specific process of shareholder reduction,including the specific reduction plan and information disclosure,and then analyzes the impact of shareholder reduction,including the impact on the company's financial situation,and the impact of continuous reduction on the company's short-term benefits.Based on the above analysis,thepractical and feasible suggestions are summed up.This paper takes the reduction of the majority shareholder of Palm Technology as a case study,analyzes the reasons for the reduction of the majority shareholder of the company and the corresponding consequences of the reduction,and gives relevant suggestions.This paper argues that the stable and sustainable development of listed companies is inseparable from an efficient internal corporate governance structure.Specifically,there must be checks and balances between the top management in the company.In addition,the relevant government departments should strengthen the construction and supervision of the securities market,and establish an effective behavior of reducing the holdings of large shareholders.The disclosure mechanism should speed up the construction of relevant laws and regulations so as to better protect the interests of minority shareholders.