The Case Analysis Of LEPU Executives Equity Monetization

Since the establishment of GEM,with the support of a number of entrepreneurial business development,but also generated a lot of problems.One big problem is that executives reduce stock,according to statistics,four years after the establishment of GEM,there are 213 executives reduce stock of 355 stocks,accounting for 60% of the cumulative amount,reach to 15 billion.Executives reduce stock impact on the market and the impact on the confidence of institutional and ordinary investors are seriously restricting the development of the GEM.This paper focuses on the reduction of the problem to research executives to analyze its causes and propose policy recommendations.In this paper,the reduction of the GEM company executives LEPU is the case,and analyze this phenomenon.LEPU as the first batch of GEM listed companies,the size and number of its holdings are ranked first GEM,so its reduction behavior more representative analysis of this typical corporate executives to better reveal the GEM holdings of the underlying causes of this phenomenon and after the impact.In the first chapter briefly describes the LEPU company situation and lead to a reduction of LEPU event.In the second chapter,through the reduction of dynamic analysis because of LEPU,summed up the issue of unreasonable and information asymmetry mechanism main reason for the reduction of the two executives.After LEPU reduction,respectively,from the company's market stock price performance,future changes in performance,changes in investor confidence in the company's three angles starting executives demonstrated reduction impact.In the final chapter of the article,restrictions on the reduction conditions,the reform of the independent director system,strengthen information disclosure,the introduction of civil compensation system improve the delisting system,and other major aspects of sound operational mechanism of GEM and thoroughly solve the problem executives reduce stock negative impact on the market.