Is There Information Manipulation In The Insiders’ Share Reduction Of Z Company?

Due to the serious asymmetry of internal and external information of listed companies,in recent years,there have been frequent cases of company insiders taking advantage of information to manipulate high stock prices and reduce their holdings.The insiders of the company took advantage of the information to take misleading statements,false records,and omission of material information,which deceived and misled external investors and seriously damaged the interests of external investors.In order to determine whether there is information manipulation in the insiders’ share reduction of listed companies,this paper adopts the empirical method and case study method,selects Z company as the case study object,and builds a Logistic discriminant model based on the market response index of insider information manipulation samples,and use this model to discriminate company Z and analyze its specific information manipulation means.The results show that the motivation of the insiders of Z company to reduce their holdings is the poor financial situation.During the process of reducing the holdings,the market reaction trends at key time points are highly consistent with the information manipulation samples.After judging the market reaction of Z company based on the Logistic early warning model,it is found that Z company does have information manipulation.Then,through a detailed analysis of the specific information manipulation methods,it was found that Company Z had the following illegal operations:timed announcement of major asset restructuring,precise reduction of holdings at the right time,large discrepancies between the pre-disclosure plan and the actual reduction of holdings at the end,and the reduction of holdings in violation of regulations and delays.Information is disclosed and the disclosure is incomplete.Based on the research results,this paper puts forward countermeasures and suggestions from the perspectives of external regulators,listed companies and small and medium investors,to further prevent insiders from reducing their holdings and cooperating with information manipulation,and to protect the interests of small and medium investors.