The Reserch Of LETV Large Shareholders' Selling And "Feedback" Behavior

With the end of reform of non-tradable shares,China's capital market began to enter the Full Circulation Times.Major shareholders tend to utilize the financial advantages and information superiority to raise the share price,and then reduce the stock to gain the stock premium income.In order to get high cash income,a lot of major shareholders choose to reduce the shares.This behavior has seriously affected the normal development of China's stock market.For this reason,it's necessary to regulate the behavior of major shareholders holdings.There is a bull market in 2015,and LETV's performance is considerable attention,its controlling shareholder Jia Yueting breaking the conventional reduction plan has aroused widespread concern in capital market.Therefore,this article will take LETV as the research object,using the method of event study,analysis the Jia Yueting's reduction,who is the large shareholders of LETV in the two occurrence of large shareholders in 2015,and the deep reasons behind the reduction,and the reflection of the secondary market after his reduction.This paper studies the reduction "feedback" behavior of large shareholders from the perspective of propping,to enrich the research on large shareholders'behavior theory.In addition,LETV large shareholders to reduce the"feedback" behavior is novel,and some listed companies modified or followed,through the case study can provide a reference for the capital market.This study found that LETV large shareholders reduce motivation to"feedback":(1)LETV in a critical period of strategic transformation,the holdings of major shareholders is to provide the necessary funds for LETV ecological construction;(2)in order to optimize ownership structure of LETV and to introduce the strategic investor;(3)under the influence of the market drivers,LETV overvalued stock also contributed to the holdings of major shareholders.In addition,with the propping theory,this paper analyzes the LETV large shareholders holdings"feedback" behavior,the behavior that eased LETV demand for funds and the introduction of strategic investors as LETV,is a new form of major shareholders of listed companies support.Then,this paper uses.the event study method,depending on large holdings of shareholders "market response feedback" to do the research found that,although the large shareholders' holdings' behavior of LETV of is a kind of support,but the reduction will bring to the market in the short term negative effects.At last,based on the conclusion of this paper,it provides suggestions for the listed companies and regulatory agencies.