China Gem Executives Holdings

After 11 years'plan and preparation of GEM, GEM was launched on Oct.23,2009. 28 first-batch GEM companies were listed at Shenzhen Stock Exchange. However, senior management resignation and reduction in the holding position of company's stock occurred frequently after those companies having been listed in GEM shortly. The public believe that it is 'three highs' that gives rise to wealth explosion of senior management after having been listed in GEM. With the intent of locking earnings produced by unreasonable stock price, senior management resigned shortly after company being listed in GEM. However, it is just the public's conjecture without theoretical and empirical evidence and support. There is no research on this field due to short history of GEM. This article mainly researches on the effect of senior management resignations, 'three highs', and corporate performance on stock reduction of senior management. In the process of research, the author believes that the data of stock reduction of senior management is affected due to short history of GEM and half-year locking period for stock reduction of senior management. Thereby, this article creatively utilizes senior management's direct and indirect holding position divided by total senior management's direct and indirect holding position as the indicator of stock reduction willingness. And then this article attempts to find out the relationship among stock reduction willingness,'three high' and corporate performance. It is meaningful to reveal the relationship which will provides some insights for regulation improvement of GEM.This article is divided into five chapters. Chapter One, it mainly focuses on the state of domestic GEM. Chapter Two introduces foreign and domestic research on insider trading, management share holding, the reputation of CPA firms and the reputation of investment banks. Chapter Three is the empirical research on management share reduction. Chapter Four is the empirical research on willingness to share reduction. Chapter Five is the research conclusion and prospect.