Study On The Motivation Of Letv Executives’ Reduction

Since October 30, 2009, since China officially listed on GEM, GEM emerging markets as China’s securities market, with its high-growth characteristics of outstanding performance in the stock market.However, the GEM listed company executives a lot of cash holdings frequent phenomenon, caused widespread concern in society. Executives of listed companies holdings sustained and healthy development,has a very important influence and protect the interests of stable development of the GEM market investors.In this paper, our companies listed on GEM Music Watch as the research object, the use of relevant quantitative data disclosed holdings of corporate executives motivation, on this basis, draw conclusions and propose specific recommendations.In this paper, as a case Letv to discover how executives holdings of behavior will bring problems to the enterprise, thus revealing the GEM companies for executives company stock holdings to take this behavior motivation. First the basics and theory executives and executives of the reduction will be briefly described, and then the theory of reduction of executives involved, such as asymmetric information, agency,corporate governance and other theories explained in detail; and the theoretical motivation of executives holdings elaborate description of this thesis further research provides the necessary basic knowledge and theoretical basis.Case Introduction and questions lead to the introduction of the Case Watch music company background information, company executives holdings by changes in the presentation, and then leads to the reduction of executives Letv motivation. Through case studies, the music network executives holdings of motivation were analyzed by using the event study the effect on the market holdings of company executives for further examination, and then analyze the impact of the reduction of the company’s executives.Given Letv executives holdings, draw conclusions of this paper: Whether the valuation factor is the performance factors, their impact on the reduction of executives of the company are reflected in the stock market’s performance deviated from the company’s fundamentals, namely price bubble for executives temptation. Submit, according to company executives holdings caused by acts targeted suggestions, hoping to take active measures from the perspective of business and markets, in order to mitigate the negative impact of the reduction of corporate executives and market caused, while good for the development of enterprises have a positive effect: first, improve the financial market, and enhance market rationality;second, improve the GEM listed companies governance structure; third, to strengthen the executive behavior of constraint; fourth, to strengthen the protection of small investors efforts.