| Since the reform of non-tradable shares in China’s stock market in 2005,major shareholders have frequently reduced their holdings and the amount of reduction is often extremely large.Usually,the stock price of listed companies will decline along with the negative signal released by the major shareholders to reduce their holdings,and cause different degrees of impact on the secondary market.As the major shareholders tend to use information manipulation and earnings management to drive up the stock price before reducing their holdings,the huge gains obtained by the major shareholders are often paid by the minority shareholders who are in the information inferior position caused by information asymmetry,thus violating the rights and interests of the minority investors.In this paper,taking the event of the reduction of the major shareholder of Broad-Ocean Motor as an example,the path and motivation of the reduction of the major shareholder of Broad-Ocean Motor are firstly revealed by literature research,case analysis and event research,following the information asymmetry theory,signal transmission theory and tunnel effect theory.Then,on the basis of analyzing the adverse impact of the reduction of major shareholders on the company’s stock price and corporate value from both short-term and long-term perspectives,the paper further analyzes the infringement of the reduction of major shareholders on the rights and interests of minority investors.By adopting the use of the market model event study selected the ocean motor different year,three times more typical underweight announcement day as a day of event study,found that the major shareholders holdings ocean motor directly short-term stock prices have a significant negative impact on the company,and then directly infringes the economic interests of minority-sized investors,On the other hand,in the long run,the decrease of the income of control will lead to the reduction of resources input by the major shareholders of Broad-Ocean Motor,which will harm the long-term interests of minority investors.In addition,the malicious selling of large shareholders who manipulated information and earnings in advance also seriously infringed on the right to know and the voting rights of minority investors.Finally,the paper puts forward some policy suggestions,such as continuing to promote the reform of securities issuance registration system,strengthening the supervision of third-party auditing institutions,increasing the punishment of illegal or malicious divested holdings,coordinating industry supervision and judicial supervision,to curb the illegal or malicious divested behaviors of major shareholders and promoting the protection of the rights and interests of minority investors. |
