Research On The Occupational Reduction Of Major Shareholders Under The Background Of Non-reduction

In the booming period of the stock market in 2015,many important shareholders of listed companies have maliciously reduced their holdings.Due to the lack of regulations by the Securities Regulatory Commission on the reduction of holdings by large shareholders and the lower cost of illegal holdings by large shareholders,the reduction of large shareholders' Deterioration of holding behavior has begun to reduce holdings in violation of regulations.The imposition of punitive measures by major shareholders in violation of regulations to reduce their holdings will not only infringe the rights and interests of small and medium shareholders,but also disrupt market order.After the regulatory department paid attention to the phenomenon of major shareholders 'illegal reduction of shares,in order to protect the interests of small and medium investors and guide listed companies' major shareholders and directors to reduce their holdings in a regulated manner,the SFC issued the 2017 "Several Provisions on Reduction of Shares" is often referred to as "New Regulations on Reduction of Shares." In general,"the new rules for reducing holdings have,to a certain extent,regulated large-scale concentrated and disorderly reductions in holdings by large shareholders.After the major shareholders of listed companies realized that the regulatory authorities have strengthened their regulations to reduce their holdings and the negative impact caused by violations of capital market violations has increased,more and more listed companies' major shareholders or Dong Jiangao have proactively issued no reduction Commitment announcement.In 2018 alone,there were 152 listed companies that issued non-reduction commitment announcements,of which about 80 were announcements that shareholders holding more than 5% of their shares promised not to reduce their holdings.However,not all major shareholders of listed companies value commitments and fulfill their commitments as promised.In the context of non-reduction commitments,listed companies that violated their commitments to reduce their holdings still exist.In this context,this article mainly studies the background,characteristics,timing,motivation,and economic consequences of listed companies' illegal holdings.Taking Lugang culture as an example,this article discusses in depth the causes and possible impacts of violations and reductions by major shareholders in the context of non-reduction commitments after the release of the new reduction regulations.The difference between this article and the existing literature on the related research on violations and reductions is mainly reflected in the fact that violations and reductions under the background of non-reduction commitments have the dual characteristics of violations and reductions in commitments,which makes them illegal and reductions in characteristics and motivations.And economic consequences are of particular particularity.Therefore,it is of great practical significance to conduct in-depth analysis of illegal shareholders 'behaviors of reducing shareholders' holdings in the context of non-reducing commitments.The characteristics of major shareholders' reductions in violations of regulations are mainly reductions in violations of regulations and reductions in commitments.At the same time,the main body of reductions in violations of regulations is more important and the date of commitment is shorter than the date of violations.The analysis of the timing of the major shareholders' illegal reduction of shares leads to the surface and deep causes of their illegal reduction of shares.This paper believes that the surface movements are due to the custodianship of family members and are not familiar with regulations and cashing of unpledged equity.Further combining the background of non-reduction commitments with the institutional background of the new regulations,it is found that the underlying causes are different from the past,mainly because the regulatory authorities have ignored small-scale violations of reductions in holdings,lack of regulations on non-reduction commitments,The cost of illegal holdings is too low and the transparency of information disclosure is low.In addition,under the background of non-reduction commitments,the economic consequences of illegal reductions are more severe than the economic consequences of illegal reductions in ordinary backgrounds.This will not only infringe the rights and interests of small and medium investors and affect market stability,but will also be extremely detrimental to the establishment of social trust,the impact on the conclusion of contracts and bank loan quotas,and will also be detrimental to the company's normal operations and future development and the implementation of new regulations to reduce holdings.The theoretical significance of this paper is mainly in the following two aspects: First,with the background of non-reduction commitments,the research on the characteristics,timing,motivation and economic consequences of illegal reductions in different situations and backgrounds has been expanded.At the same time,the analysis of the relationship between violations and reductions of new holdings and the new rules to reduce holdings has been extended,and theoretical research related to the new reductions has been expanded.Secondly,the relevant theoretical researches on non-reduction commitments have been expanded.It is very common for market entities to issue certain commitments in the current Chinese capital market,such as performance commitments in the event of mergers and acquisitions,and stock repurchase commitments.However,little attention has been paid to the literature regarding the study of possible economic consequences of placing commitments in the context of major shareholder violations and reductions.This article is based on the case analysis of Lugang culture,in order to provide some new explanations for this research.In addition,the practical significance of this article is mainly reflected in the following two aspects: First,it can provide theoretical support for the regulatory authorities to supervise listed companies illegal holdings and make commitments,and improve the relevant regulations for the regulatory authorities Provide some policy implications.Second,it can provide some inspiration for the concept of listed companies to strengthen compliance with laws and regulations,and make them focus on the accumulation of social trust.