Study On Opportunity And Economic Consequences Of Controlling Shareholders' Reduction Of Holding Time

With the completion of the equity division reform and the IPO lock-in period,the number of freely tradable shares in the secondary market has been increasing,and the reduction in holdings by major shareholders has become fierce.Shareholders' reductions sent negative information to the market,causing stock price volatility and widespread media attention.The controlling shareholder will use its control over the listed company to create "convenience" in order to obtain the excess proceeds of the reduction.To study the timing and economic consequences of holdings by controlling shareholders,it is possible to understand the means by which controlling shareholders reduce their holdings,the factors that influence the reduction,and the impact on listed companies.In May 2017,in order to curb chaos in the capital market,the regulatory authorities issued a reduction of "new regulations." After studying the reduction of holdings by the controlling shareholder after the reduction of new regulations,it can provide some useful suggestions for corporate governance,regulatory authorities,and small and medium investors.This article selects Anne shares as a case and sorts out the controlling shareholder's reduction of shares.The analysis of stock price and trading volume shows that Anne shareholding shareholders have the opportunity to reduce their holdings,using the theory of incomplete rational behavior and information is not The symmetry theory explains its reduction of holdings.On this basis,the stock's illiquidity and control income of Anne stocks were further calculated.The profitability of the shareholding reduction of Anne Shares' controlling shareholders was examined;and the comparable company Huatai shares,which had never been reduced in the same industry,was used as a reference.Comparing the profit-making,cash-generating,and value-creating capabilities of the two,the incident research method was used to calculate the abnormal return rate and accumulated abnormal return rate before and after the reduction of the holdings of Anne Shareholding;after the release of the new regulations,the controlling shareholder of Anne Shares The way of obtaining funds has changed,from reducing shares to equity pledge financing.This paper also studies the economic consequences of these changes.Controlling stockholders tend to choose to reduce their stakes.They tend to choose favorable news.During the stock price rise after the announcement,most trading methods choose bulk trades,and the higher the liquidity level,the lower the trade discount level.The higher the control value,the lower the discount price.One year after the release of the new regulations,the controlling shareholder no longer reduces the shareholding.On the contrary,it also authorizes Senior management to increase its shareholdings with other core management personnel.In order to prevent the risk of making up positions and closing out the equity pledge financing,the market value of the listed company The degree has increased,and the market value management has a certain restraining effect on the controlling shareholder's profit appropriation behavior.