The Effect Of Majority Shareholders To Reduce Stock On Shareholders’ Rights

With the non tradable share reform is completed and most of the non tradable shares of the lifting of the ban, the securities market of our country entered the stock entire circulation times, shareholders of listed companies will no longer be divided into the holders of tradable shares and non tradable shareholders, shareholders will be replaced. This historic institutional reform has changed the environment of China’s capital market, and has changed the behavior of the major shareholders, especially the behavior of the interests of minority shareholders. After the completion of the split share structure reform, non tradable shares by Ayumi lifted and circulation in the secondary market on the right, the system changes, a direct result of the non tradable shareholders to achieve changes in the way of interest. Before the reform of non tradable shares, the major shareholders of listed companies are more concerned about the company’s net assets, the net assets of the company is the main source of their interests. After the reform of non tradable shares and non tradable shares get traded to the right, the large shareholders begin to pay close attention to the changes of the stock price in the secondary market. Large shareholders as the company’s insiders, they have a lot of advantages compared to small shareholders, such as they are able to better understand the company’s financial information, business conditions and so on. So in the era of full circulation, the major shareholders realize the benefits of the ultimate way is as far as possible to raise the stock price and then through the reduction to obtain speculative gains, eventually big shareholders the cash holdings, and minority shareholders can only be from the fluctuating stock price accept interest losses. Reflects the information asymmetry, the capital market is not fair.From1,January 2011 to December 31, 2013, Gorgeous Family Listed Companies in this case as the research object, using qualitative and quantitative analysis of a combination of research methods. Analysis of major shareholders reduction to motivation and large shareholders reduce the effects to act on the rights and interests of minority shareholders. Results show that ownership structure is too concentrated is caused a large shareholders reduce to the main reason, in addition, large shareholders reduce to the main motivation which is to get the cash income, emptied listed companies, caused by the behavior of the results are obvious, is directly related to the interests of small shareholders and stock prices fell sharply, company’s price earnings ratio, earnings per share, net asset per share were in less large shareholders to before and after the great changes have taken place in and the rights and interests of the minority shareholders directly affected by the large shareholders reduce the influence to the. The innovation of this paper lies in the author’s research and Analysis on a new way to reduce the interests of minority shareholders. Finally, this paper puts forward policy recommendations from the aspects of internal governance and external supervision to better regulate the behavior of major shareholders, protect the rights and interests of minority shareholders, improve and continue to develop the entire capital market.