Research On The Increase And Decrease Behavior Of Controlling Shareholders Of Listed Companies

In recent years,increasing and decreasing holdings of controlling shareholders have occurred frequently,and the interests of small and medium shareholders are often infringed upon by such increasing and decreasing behaviors.Such increasing and decreasing holdings accompanied by "tunnel effects" not only seriously damage the interests of investors,but also damage the company.Value violates the company’s goal of maximizing the value of the company,and also seriously disrupts the order of the capital market and reduces the efficiency of resource allocation.In addition,under the background of asymmetric information,high allocation of leverage,short-term arbitrage-driven overlay of the downturn in the stock market,and the dispersal of confidence,the controlling shareholder’s holdings and reductions are often considered by investors as a vane.Therefore,it is imminent to identify and study the reasons for the increase and decrease of the controlling shareholders of listed companies and their impact on listed companies.The research on the increase and decrease of holding shareholder’s behavior has certain theoretical and practical significance.First of all,there are many studies on the increase and decrease of holding shareholder’s behavior,but most of them are unilateral research on increasing or reducing holding.This article has selected Huabao International to conduct a unified analysis of the increase and reduction of holdings by the controlling shareholders at different stages since its listing.And the opinions are different,the research in this article can provide case evidence for the research on the timing of controlling shareholders’ holdings.This article selects Huabao International Holdings Co.,Ltd.,which has both increasing and decreasing holdings of the controlling shareholder after listing,as a case.Through the detailed explanation of increasing and decreasing holdings of the controlling shareholder of the case company,it combines the existing The research explores the reasons for controlling shareholders ’behavior of increasing and decreasing holdings at different stages;studies the relationship between the company’s operating performance,information disclosure,and stock valuation and the timing of controlling shareholders’ increasing and decreasing holdings.At the same time,it analyzes the influence of the increase and decrease of the controlling shareholder on the stock market,the controlling shareholder and the minority shareholders.The study found that,first,when the equity is highly concentrated,the driving force of the controlling shareholder’s holdings is mainly to monetize the profits and gain control gains.The reasons for the increase in controlling shareholder’sholdings after the reduction of control power show two reasons for supporting listed companies and the appropriation of interests.Second,in the case of asymmetric information,the controlling shareholder will choose to reduce its holdings during periods of good operating performance and high stock valuations,and increase its holdings when the value of the stock is undervalued.At the same time,the controlling shareholders will also use control to control Information disclosure of listed companies to support their own increase and decrease operations.Third,the controlling shareholder’s increase and decrease in shareholding has indeed affected the company’s stock price to a certain extent.After the completion of the reduction,the share price has shown a downward trend,and the increase in shareholding has stimulated the stock price to rise.And in the process of increasing and decreasing the controlling shareholder,there is the exploitation of the interests of small and medium shareholders to realize their own private benefits.