Media Attention And Reduction Of Major Shareholders

In recent years,a large number of restricted shares have been lifted,and the low cost price has stimulated the major shareholders of listed companies to reduce their holdings and cash out transactions through the secondary market.The "liquidate reduction" and "high precise reduction" of some major shareholders have attracted keen attention from the media and regulatory authorities.However,the major shareholders of the company have the right to make decisions on the daily operation and major issues of the company.In the process of reducing the company’s holdings,whether the major shareholders will use their internal advantages to seek personal gains is even questioned.In December 2017,Zhangzidao was announced that Hedao No.1 Fund,the second largest shareholder of The Company,had completed the shareholding reduction plan announced in September of the same year.The motivation of the major shareholder’s shareholding reduction has attracted wide attention as the business of Zhangzidao continues to improve in the media.On January 30,2018,Zhangzidao announced its "Scallop Escape" event,which resulted in a sharp drop in its stock price.Hedao No.1 Fund reduced its shares by a total of 1.998 million shares with a transaction value of more than 10 million yuan.In May 2021,the "Ye Fei Event" attracted wide attention.In order to conduct "pseudo-market value management",enterprises usually employ financial and economic public relations companies as guidance intermediaries to raise stock prices and market value through media,stock critics and Internet big Vs.China’s capital market is still a weak efficient market,and the market pricing efficiency is not high.Therefore,some listed companies are keen to use the media to hype short-term hot spots,invest in some projects with unknown long-term prospects or carry out extensive mergers and acquisitions,so as to achieve the purpose of raising stock prices in the short term.And behind the media hype,often accompanied by the major shareholders of the precise reduction,so that investors bear a large loss.Studies have found that media reports have become an important factor affecting stock price fluctuations,and major shareholders are motivated to actively seek the influence of media reports before reducing their holdings due to the characteristics of concealment and difficulty to verify afterwards.This thesis mainly studies the influence of media attention on the divested behaviors of major shareholders of listed companies,and holds that there are also deviations in media attention,that is,media reports that send out signals before the reduction of major shareholders of the company have the market role of "promoting the waves",and takes the case of The reduction event of Major shareholders of Archer Mind Technology for analysis.The sample of empirical test includes the reduction information of major shareholders of all A-share listed companies in China from 2018 to 2020,and the media attention index adopts the quantitative statistical data of network news in the network financial news database of CNRDS database.Research results found before completion of major shareholders holdings in the company,the media attention and the tendency to media and big shareholders hold a significant positive correlation,accordingly from the empirical level certificate when large shareholders have underweight motives,the media’s attention will rise,in the form of a conspiracy with media via underweight stocks when prices just high profits.At the same time,after in-depth analysis of the reduction of major shareholders of Archer Mind Technology,it was found that the actual investment was not realized after the announcement of the company’s foreign investment,and the rampant media coverage promoted the stock price to continue to rise,and then the major shareholders realized high and precise reduction with the help of conceptual speculation.The whole time schedule and process were very tight.Let a person have to suspect that Archer Mind Technology with the help of media hype concept to reduce the suspicion.The research of this thesis has enriched the literature on the transactions of major shareholders and media attention,and has important theoretical and practical significance for improving corporate governance and investor education.