| Only four years after SBM establishment, executives of nearly70%listed company had holding reduction when restricted shareswere lifted. Unlike the motherboard market, SBM executives haveboth expectation of short-term profit and actual control ofcompanies, and they have convenient in implementing specificaccounting manipulation to get the maximum benefits.Research on SBM executives’ holding reduction and accountingmanipulation are less than those on the motherboard marketexecutives and major shareholders. This paper selects a typicalSBM campany–BY-HEALTH as research subject. There is not anycontrolling shareholder holding reduction, disclosed accounting fraud behavior and accounting manipulation to avoid ST yet in thiscompany any. So research on its executives’ holding reductionwill offer useful information for researchers and investors.This paper analyses share price, revenue, net income, cashflows, assets and other market data and related reactions beforeand after the period of three large-scale BY-HEALTH executives’holding reduction. The results shows that executives have doneaccounting manipulation for obtaining great benefits of holdingreduction. This paper concludes the general characteristics andcommon means of accounting manipulation of SBM executives’holding reduction, and also gives the recommendations to preventexecutives’ holding reduction. |
