Restructuring Or Reduction

As an effective way to optimize the allocation of resources and enhance the competitiveness of enterprises, M&A will undoubtedly have a good effect on the enterprises to integrate into the capital market, accelerate the integration of resources and stimulate domestic demand. Western countries have experienced 5 intense M&A, which promote the social capital and the changes of the structure of the enterprise, effectively promote the upgrading of industrial structure. In 2014, after the reform of state-owned enterprises and foreign M&A, the M&A of the listing Corporation has become the main theme of the capital market in China. The number and the amount of the transaction of M&A of listing Corporation is showing a substantial growth, fully reflects the market characteristics of M&A of listing Corporation. After experiencing a boom of M&A, the failure rate of M&A of listing Corporation is still high. Behind the high failure rate, it seems that some of the reasons are not clearly disclosed.On the other hand, since the reform of the stock market, Chinese securities market has a new way of equity circulation. But the Reduction of major shareholders has become a hot topic in the field of theory and practice which has caused a great impact. High reduction of major shareholders in general will impact the A shares market confidence and lead the small shareholders feel be caught off guard. In the case of capital market information asymmetry, some large shareholders and executives in the sensitive period of announcement trading in the high price in order to cash, in low hunters and profited. But this also caused the loss of the interests of other small and medium-sized shareholders, which leads to the serious injustice of the entire securities market, affected Chinese securities market stability and the construction of market economy.According to this phenomenon, this article first from our country present high listing Corporation M&A failure rate, Analysis the development trend and the trend of the failure of M&A in recent years. Put forward a reasonable explanation of M&A Motives and failure reasons. Secondly, use the event analysis method research on the market reaction after the announcement of the restructuring announcement. Analysis of the impact of the disclosure of the listing Corporation restructuring information on the company’s stock price and try to reveal the reduction of major shareholders in the listing Corporation after the announcement whether there is a clear opportunity to choose or there is a high cash behavior. Thirdly, this paper is aimed at the reduction of the major shareholder of the A stock market after the massive lifting of the ban. Select the case of the failure of the reorganization of a detailed analysis, focuses on behavior of controlling shareholder of M&A of listed company use their own advantages and M&A information to bid up the price, reduct stock for cash holdings. At last, according to the current situation of our country’s listing Corporation M&A and the phenomenon of large shareholders erode small and medium shareholders’ interests, put forward suggestions from the angle of the listing Corporation itself, the regulatory agencies and the relevant policies and regulations.