Text Tone Management And The Reduction Of Large Shareholders

Excess information often leads to excess returns.Textual information,as a supplement to financial data,often contains a wealth of information.With the development of text analysis technology,the research on capital market disclosure has expanded from traditional financial data indicators to explore text information.Text tone,as an important feature of text information,is a hot topic in text research.At present,there are certain achievements in the research on both text tone and major shareholders’ shareholding reduction,but the research on the correlation between the two is relatively weak.Based on domestic and foreign literature review and theoretical research,this paper takes Beijing Water Business Doctor Co.,Ltd.as the object of analysis,uses sentiment analysis technology,and quantifies the textual intonation information released to annual reports,announcements,media reports,analyst research reports and other materials before and after its major shareholders reduce their holdings.Then compare and analyze the actual operating performance reflected by the financial data,and then study the information manipulation means of the company’s major shareholders’ reduction.It is found that investors can react to the positive or negative tone of text messages and reflect it on the changes of stock prices,and text tone management may have become a tool of information manipulation in the self-interested reduction of major shareholders.In the case of poor operating performance and great capital risk,Beijing Water Business Doctor Co.,Ltd.issued unusually positive financial reports and transmitted the signal of the company’s development to the market with the help of text tone,which made the company’s stock price rise rapidly in a short time while the major shareholders reduced their holdings at the peak and successfully cashed out.In addition,the unusually positive tone of the media and analysts has stabilized the share price to some extent,reducing the risk of a crash in the stock price in the short term after major shareholders sell down their holdings.Based on this,from the perspective of supervisors,investors and listed companies,this paper proposes that relevant departments should improve the information disclosure and major shareholder reduction system as soon as possible,investors should improve their information identification ability and risk awareness,and listed companies should standardize their information disclosure behavior,hoping to guard against the behavior of major shareholders of listed companies choosing opportunities to make profits by using text tone management.Avoid the interests of small and medium-sized investors are infringed,and jointly maintain the healthy and stable development of the capital market.This paper investigates the correlation between text tone and major shareholders’ shareholding reduction through specific cases,and confirms that the strategic management of text tone may have become a new path for information manipulation in major shareholders’ shareholding reduction in listed companies,expanding the research boundary of text tone,enriching the research form,and confirming the value of tone analysis,as well as providing a new perspective for studying the path of major shareholders’ shareholding reduction in China’s capital market.At the same time,it has certain positive significance for promoting the improvement of information disclosure and regulatory system in China’s capital market.