A Study On The Economic Consequences Of The Controlling Shareholders' Behavior Of Reducing Their Holdings By Timing

In September 2005,the China Securities Regulatory Commission promulgated the Measures for the reform and management of the split share structure of listed companies,declaring that non-tradable shareholders have the right to freely trade shares in the secondary market,this means that China's stock market has officially entered the era of full circulation.However,this reform measure has indirectly changed the listed company non-tradable shareholders to obtain the benefits of the way.Before the share reform,the main way of non-tradable shareholders' profit is to operate the enterprise,to obtain the profit distribution,and has nothing to do with the market price.After the share reform,non-tradable shareholders have the right to reduce their holdings in the secondary market to gain income,tightly bound the share price and the interests of major shareholders together.With the change of the way of making profits,a large number of shareholders began to turn their own interests to the secondary market one after another,to obtain the income of capital gains and have no intention to engage in business at all,the development of enterprises,where the interests belong to minority shareholders the capital market are seriously affected.Based on this,this paper takes the controlling shareholders as the starting point,and studies the economic consequences of the controlling shareholders of Tianlong group.First of all,it introduces the basic situation of Tianlong Group,the financial situation before and after the reduction,the ownership structure,and the specific process of the reduction.Secondly,through the strategic information disclosure,bulk trading,before and after the reduction of stock prices,cumulative excess return analysis of the controlling shareholders to reduce the means and timing.Finally,in-depth Study of opportunity to reduce the behavior of enterprises,small and medium-sized shareholders,the capital market brought about economic consequences.The research shows that high transfer has become a tool for controlling shareholders to reduce their holdings and cash out;controlling shareholders have a strong ability to choose the right time in the process of reducing their holdings;and the controlling shareholders' behavior of reducing their holdings at the right time will bring serious negative economic consequences,this includes hindering the long-term development of enterprises,encroaching on the economic interests ofminority shareholders,infringing on the legal rights and interests of minority shareholders,disturbing the stability of the capital market and destroying the equity of the capital market.At the same time,according to the results of the study,the concrete measures of the article include the following aspects to control the controlling shareholders' behavior of reducing their holdings.