| In 2005,the China Securities Regulatory Commission proposed "shareholding reform".The market of China has entered the era of full circulation.Therefore,Shareholders can freely trade stocks on the secondary market,significantly enhancing the vitality of the stock market.With the gradual listing of banned stocks,the reduction of major shareholders have frequently occurred.However,China’s supporting laws,regulations and regulatory systems are not perfect,which gives some major shareholders the advantage of information and sells a large number of shares in violation of regulations.This behavior of major shareholders is not only detrimental to the company’s business development and damages the company’s reputation,but also causes small and medium investors to lose confidence in the securities market.It deviates from the original intention of the stock market reform and active stock market,and undermines the stable and healthy development of the capital market.It has gradually deviatedfrom the purpose of active stock market and undermined the stable and healthy development of the capital market.Based on the principal-agent theory,signal transfer theory theory,corporate governance theory,and efficient market theory theory,this article selects Ourpalm,one of the leading mobile game companies in China,as the research object.And adopts event research method,literature research method,and financial index analysis method to study motivation and economic consequences of substantial shareholder reduction.Finally,it draws relevant enlightenments and conclusions from the three dimensions of government supervision,corporate governance,and small and medium investors.Since the listing of Ourpalm in 2012,it has attracted a lot of attention,and has also made a series of reductions of major shareholders attract people’s attention.Therefore,this article studies the major shareholder Yao Wenbin’s multiple reductions from 2016 to2018.This article first analyzes and summarizes the background and timing of its holdings,and then analyzes the motivations of large shareholders to reduce their holdings in terms of company stock valuation,operating performance and strategic development,and brain drain.Then this article analyzes the economic consequences of holdings.The researchresults show that the motivation of major shareholder Yao Wenbin’s reduction includes the company’s market value is overvalued,the motive for cash,strategic development needs,and the motivation of employees.At the same time,it is found that the major shareholder will actively innovate the reduction method in the new environment.For 2016 and 2018 reductions,research shows that Yao Wenbin ’s reductions have sent negative information to the market in the short term,and for 2017 reductions,the market has given some positive feedback,indicating that different motivations for reductions may causes different market reactions.In the end,this article puts forward recommendations for improving the relevant policies,regulating the reduction of holdings of major shareholders,improving the level of corporate governance,and protecting the rights and interests of small and medium investors in terms of the regulators,the company,and small and medium investors.Supervisory departments should improve the information disclosure system for major shareholders to reduce their holdings,increase punishment,and appropriately extend the lock-up period for strategic investors;listed companies should improve operational capabilities and develop a scientific employee incentive mechanism;small and medium investors should increase awareness of investment risks. |
