Research On Stock Price Manipulation Under The Alienation Of Market Value Management In Dalian Insulator Company

In the context of China split share structure reform,the interests of major shareholders and small and medium-sized shareholders are closely related to the market value of listed companies.The business objectives of listed companies are gradually shifted from profit maximization to market value maximization,but China’s capital market largely has the characteristics of weak form efficiency.There are phenomena such as information asymmetry and resource misallocation.More often than not there exists bias between the market value of listed companies’ stocks their intrinsic value.Therefore,effective market value management is carried out to reflect the intrinsic value of the company.It is vital for both listed companies and investors.With the advocacy of the new “Several Opinions on Further Promoting the Healthy Development of Capital Market” in 2014 to encourage listed companies to establish a sound market value management system,listed companies have paid more and more attention to market value management.Because of lack of a clear system of market value management and certain similarities between stock price manipulation and market value management,many investors and listed companies are likely to confuse the two.In the darkness of the capital market,there are lawbreakers who distorted the concept of market value management and even strode across the ‘red line’(bottom line)of law under the cloak of legality to carry on stock price manipulation.Based on this background,it is necessary to study the stock price manipulation under the market value management alienation.This paper adopts a case analysis method and selects the case that is the first case of information manipulation in 2018,Fuxing Group and Li Weiwei implemented stock price manipulation on Dalian Insulator.Based on the related theoretical analysis of stock price manipulation under the market value management alienation.Firstly,according to the relevant information given by the securities supervisor,Dalian Insulator is introduced.Secondly,by comparing the characteristics of market value management and stock price manipulation,the causes of the market value management alienation of Dalian Insulator and the method of stock price manipulation under the market value management alienation are analyzed in detail.Research suggests that the main causes of market value management alienation are the interests of Dalian Insulator’s major shareholders and intermediary agencies,the ultimate shareholder’s "tunneling" of small and medium shareholders,the asymmetry of information between companies and investments,and the deviation of intermediary agency functions.In addition,Fuxing Group and Li Weiwei leveraged the ambiguity of market value management and stock price manipulation,using the information advantages of controlling shareholders to implement insider trading and market manipulation,which constitutes a series of transaction manipulations such as continuous trading manipulation,washing and selling manipulation,tail trading manipulation and false declaration manipulation,seriously violates the harmonization of market value management with emphasis on intrinsic value and market value.Third,the work makes use of excess return rate comparison method and financial analysis approach analyze the market performance of listed companies before and after the market value management alienation,evidences that the market value management alienation increased the equity pledge risk,legal and compliance risks of listed companies in the short term,and did harm to the interests of small and medium shareholders;in the long run,that the market value deviated the fundamentals of the company damaged the intrinsic value of the listed company and affected the ability of the company to continue to operate.Finally,this paper puts forward relevant suggestions from the perspective of regulators,listed companies and investors.It is believed that regulators should introduce relevant guidelines,strengthen supervision and punishment,and improve the information disclosure system;listed companies should improve based on the three systems of market value management.In order to realize their own strategic development;in addition,investors should think rationally and avoid blindly following the trend.The research enriches the results in the areas of market value management alienation and stock price manipulation.so that listed companies can better use market value management,prevent stock price manipulation,further protect the interests of stakeholders,and promote the sound development of China’s capital market.