Research On Economic Consequences Of The Reduction Of Major Shareholders In Sinobioway Medicine

In recent years,the number and amount of major shareholders reducing their holdings have significantly increased,and even multiplied.The reduction of major shareholders has had a negative impact on corporate operations,small and medium-sized investors,and the operation of the capital market.Large shareholders have more information advantages and can influence stock prices by manipulating information disclosure timing,earnings management,etc.,thereby reducing their holdings at high levels and withdrawing cash.This not only damages the interests of small and medium-sized shareholders,affects the normal operation of the company,but also hinders the normal operation of the capital market.The issue of major shareholder reduction has received widespread attention from the practical community and the public,and it is urgent to standardize the reduction behavior of major shareholders.Therefore,this paper takes Sinobioway Medicine as the research object,and uses the event study,EVA analysis method and factor analysis method to study the economic consequences caused by the reduction of large shareholders,so as to provide suggestions to curb the reduction of large shareholders and its negative effects,and provide a reference for policy making departments and the governance of Sinobioway Medicine.Firstly,the research background,significance,content,and methods were elaborated,and the motivation,impact,and evaluation methods of domestic and foreign research achievements were discussed;The concept of major shareholder reduction has been introduced,and theories such as information asymmetry,signal transmission,principal-agent,and related evaluation methods have been referenced.This provides a theoretical basis for the case introduction and motivation and impact analysis in the following text.Secondly,it introduced the company profile,financial situation,and equity structure of Sinobioway Medicine,sorted out the process of the reduction of Sinobioway Medicine’s major shareholders,and analyzed the reasons for the reduction of Sinobioway Medicine’s major shareholders based on the company’s operating situation and market environment.Thirdly,the market reaction caused by the reduction of major shareholders is analyzed through the event study method.Use factor analysis and financial indicators to analyze financial performance,and use EVA to analyze the impact on enterprise value.Finally,based on the analysis of the reasons and impacts of reducing the holdings of major shareholders,relevant suggestions are proposed to curb the reduction and its negative effects from two aspects: internal governance and external supervision.