A Study On The Motivation And Economic Consequences Of The Reduction Of Major Shareholder In Chinese Online

Securities Regulatory Commission Announcement [2016] No.1 stipulates that the major shareholders,directors,supervisors and senior managers of listed companies who reduce their shareholdings should not only abide by the limitation period and the requirement of reduction ratio,but also fulfill their obligation of information disclosure.In the reduction plan,the reasons for reduction should be explained,that is,the reasons for reduction should be disclosed.According to the information of shareholder reduction disclosed by listed companies,the reasons for the reduction of large shareholders are different.Generally,there are three main types: capital demand,self-development demand and investment demand.However,some reasons for reduction,such as "improving personal life",are not only small in number,but also have a very different impact after disclosure from the above general reasons for reduction.Once the reasons were disclosed,it quickly triggered extensive media coverage and doubts from secondary market investors.This paper defines them as special reasons for reduction.This paper selects the case of the reduction of holdings of Wang Qiuhu,the major shareholder of "Chinese Online",which has issued a special reduction reason,and explores the motivations for its reduction,and examines the impact of the disclosure of special reduction reasons on the economic consequences of major shareholder reduction.It is found that the reduction of capital appreciation investment characteristics,the use of information advantages,and the improvement of corporate stock liquidity are the main drivers that drive major shareholders to make reduction decisions.The reason for issuing special reductions is firstly to achieve the purpose of catering to the mandatory disclosure and reduction of supervision.The reason why Wang Qiuhu,the major shareholder,uses "improving personal life" as a reason for reducing the holdings is to cover up his true reduction incentives to avoid The self-reduction behavior conveys to the market a negative signal that the company's performance prospects are poor and the stock price is overvalued.The reason for special reductions under the influence of the media reporting effect has driven the negative sentiment of investors in the secondary market and exacerbated the economic consequences of the reduction of shareholder behavior.The research in this paper is helpful to verify the impact of the disclosure of special reduction reasons on the shareholder's reduction behavior,so as to provide advice and suggestions on regulating the shareholder's reduction behavior,improving the information disclosure system and providing more useful information for small and medium investors' decision-making.And suggestions.