Research On The Legal Regulation Of The Market Value Management Of Listed Corporation In China

In recent years, the market value management of listed companies is growing vigorously. Although the market value management in some listed companies has achieved certain effect, failed to grasp the essence of the market value management lead many listed companies to get lost amid the trend of market value management. Some companies believe market value management is simply the management of share price. Some companies even, in the cover of market value management, actually conduct insider trading, market manipulation and other violated actions. Based on a clear understanding of the basis connotation and main mode of market value management in listed companies, this paper combed the deviated market value management behaviors, analyzed such behaviors and pointed out the essence is market manipulation and insider trading in the cover of market value management. On this basis, it put forward suggestions for regulating the market value management behaviors of listed companies in China. It includes four parts:The first part introduces basic theory of market value management in listed companies. Firstly, illustrate that the essence of market value management is that a company, based on the market value signal, takes related measures to ensure the share price can reflect the actual value of company while pursuing the maximization of company value. Then, by analyzing the basic modes of market value management in listed companies, a conclusion can be arrived at that the essential goal of market value management is to guarantee the maximization of companies and shareholders whose share price has truly reflected the company value. Lastly, the theoretical basis for the analysis of our laws regulating listed companies is: investor protection theory, corporate social responsibility theory and state intervention theory.The second part summarizes the deviated market value management modes: by combing the market value management case in the process of market supervision, it can be concluded that the deviated market value management behavior modes in practice mainly include block trading and share-holding reduction, selective information disclosure, PE-joined merger and other market-value-related forged market value management behaviors. And it point out that the essence of such behaviors is market manipulation, insider trading and false statement in the cover of market value management.The third part identifies the illegal acts in respect of market value management in listed companies. Firstly, according to the characteristics of false market value management and by referring to the related regulations of prevailing laws, it can be analyzed and obtained that the “conditional deliberate presumption” principle in Chinese Taiwan area should be taken for reference to identify the intention of manipulator in the process of market value management. The consistency of operational goal in the secondary market should be used to identify the insider trading behavior in market value management. Lastly, it point out that the essence of predictive information disclosure of false market value management is false statement.The fourth part put forward suggestions for regulating the market value management of listed companies in China. Firstly, it propose to formulate the market value management standard for listed companies and guide the management from different aspects, including the essence, behavior type, assessment standard of listed companies' market value management. Then it propose to enhance the supervision on the market value management behavior of listed companies and extend from three aspects: 1, build market value management inspection system; 2, enhance the investigation on illegal operation; 3, enhance the supervision on market value management participators' fulfillment of promise. Lastly, it stressed the regulation of market value management behaviors from three aspects: 1, give play to the listed companies' function of autonomic organization; 2, perfect the civil liability mechanism for punishing violated operations in securities market; 3, improve the litigation efficiency for compensating investors.