Study On The Factors That Affect The Reduction Of Senior Executives Of The Listed Companies In Gem

Recently, a new security exchange market has been launched in our country, which is GEM. GEM is performing well with the characteristics of high corporation growth. However, the senior executives of the listed companies in GEM are reducing their stocks frequently with big amount, which causes many adverse effects on the investors, the companies and GEM itself. The listed companies in GEM were chosen as the research objects, and public data were used to analyze the influence factors of the executives’ reduction. After drawing the conclusion, related suggestions were put forward at the end of the article.After using the research results of the domestic and foreign related literature for reference, the market factors and the policy factor which lead to the reduction of the senior executives were discussed qualitatively. All the355listed companies in GEM from2009-2012were chosen as the research samples and descriptive statistical analysis were used to describe the characteristics of the reduction of senior executives. The relationship between the reduction of the executives and the factors were analyzed after the multiple linear regression model established. The senior executives were divided into4types, which were entrepreneurs, investors, agent and management. It was the innovative practice.The empirical research results showed that the price’s deviating from the company fundamentals was the root cause of the reduction of the senior executives and that different factors affected different types of executives. At the end, the corresponding policy recommendations based on the conclusions were put forward.