Acase Study On Major Shareholders’ Clearance Reduction Of Jiai Technology

Many large shareholders of listed companies carry out large-scale reductions under the banner of “need for their own business development”,“enhancing liquidity in the secondary market” and “company operating arrangements” to achieve the purpose of cashing out.This unobtrusive behavior of the major shareholders suddenly damages the company’s reputation and adversely affects the company’s business development.At the same time,it seriously damages the interests of small and medium investors and further hinders the reform and development of the stock market.As of the end of 2018,a total of 3,003 listed companies in Shanghai and Shenzhen have reduced their holdings,with a cumulative number of 155 billion shares reduced,accounting for 4.72% of the cumulative lifting of restrictions on restricted shares has a market value of 2.0206 trillion yuan,accounting for 6.23% of the cumulative market value of lifting the ban.Although in recent years,the securities regulatory authorities have continuously issued laws and regulations on regulating shareholder reductions,the crazy shareholding reductions of large shareholders have not been restricted,but have occurred more frequently,which shows that the relevant measures have not played their due role to a certain extent.Therefore,the analysis of the reasons,methods and effects of the liquidation reduction of Jiai Technology’s major shareholders has certain practical significance for preventing the liquidation reduction of major shareholders and protecting the interests of small and medium investors.This article uses information asymmetry theory,principal-agent theory,market timing theory,and control theory to conduct an in-depth analysis of Jiai Technology’s major shareholders’ liquidation reduction based on the theoretical basis of related major shareholders’ clearance reduction.To explore the reasons and impact of liquidation reduction of major shareholders.On the basis of reading relevant domestic and foreign documents,I summarized this article and constructed a related research framework.This article uses six chapters to research and analyze the case of Jiai Technology’s major shareholder liquidation reduction.The first chapter is the introduction.This chapter first explains the research background and significance of the case,then combs the domestic and foreign literature on liquidation reduction of major shareholders,and finally summarizes the research ideas and methods of this article.Compared with general small-scale reductions,liquidation reductions by major shareholders refer to the behavior of listed company shareholders to sell all their holdings by means of block transactions,negotiated transfers,etc.It can be seen fromthe research results at home and abroad that there are relatively few studies on the liquidation reduction of major shareholders in the existing literature.However,this article takes the liquidation reduction of major shareholders of Jiai Technology as the research object,hoping to be useful for the capital market and small and medium-sized enterprises.Investors can provide a certain reference for preventing this type of liquidation reduction.The second chapter is a theoretical overview of the liquidation reduction of major shareholders.This chapter first introduces the concept and characteristics of major shareholder reductions,then analyzes the reasons and methods of major shareholders liquidation reduction,and then elaborates the theory of major shareholders liquidation reduction basis.The third chapter starts with the introduction of the case of Jiai Technology’s major shareholder liquidation reduction.It first introduces the basic situation of Jiai Technology and its major shareholders,and then introduces the situation and characteristics of Jiai Technology’s major shareholder liquidation reduction.The fourth chapter focuses on the analysis of the reasons for the liquidation reduction of Jiai Technology’s major shareholders and the timing of the reduction process.The fifth chapter analyzes the impact of Jiai Technology’s major shareholder liquidation reduction,mainly analyzing the impact of the entire reduction event from the market,the company,and investors.The sixth chapter elaborates the research conclusions and enlightenment of this article,summarizes the conclusions of the full text based on the previous analysis,and puts forward relevant suggestions with reference value.This article mainly adopts the literature analysis method and case study method.Based on the analysis of the case of Jiai Technology’s major shareholder liquidation reduction,it focuses on the analysis of the timing selection and the impact of Jiai Technology’s major shareholder liquidation reduction.At present,scholars at home and abroad mainly study the motives and methods of liquidation reduction by large shareholders,and pay less attention to the phenomenon of timing and the impact of liquidation reduction.Therefore,from the perspectives of theory and practice,this article analyzes the case of Jiai Technology’s major shareholder liquidation reduction,and provides certain ideas and enlightenment for relevant departments and investors in my country to prevent similar liquidation reduction behavior.Based on the analysis of the clearance reduction of Jiai’s major shareholders,this paper draws the following research conclusions: First,Jiai Technology’s major shareholders made a timing choice when they cleared the type of stock reduction.Before the reduction,they willincrease the company’s stock price through a variety of means.They will arrange the time for the reduction in the reduction process and exit the company as soon as possible after the reduction;Second,the clearing-type reduction of Jiai’s major shareholders has significantly changed the company’s financial operating conditions and the stock price has fallen;Third,the clearing-type reduction of Jiai’s major shareholders has damaged the interests of small and medium investors.On this basis,this article believes that in order to reduce the negative impact of large shareholders’ clearance-type reduction,it is necessary for the regulators,companies and other investors to work together.The specific research implications are as follows: First,regulatory authorities should increase penalties for listed companies to reduce their holdings of violations of laws and regulations;Second,the relevant departments should improve the relevant system of information disclosure on reduction of holdings;Third,the company should optimize its development strategy to reduce the negative impact after reduction of holdings,while maintaining the interests of small and medium investors,and maximizing the value of the company.