Research On The Reduction Of Executives And Major Shareholders Based On Information Advantage In The GEM

There are some loudly expressed concerns about the Major shareholder transactions of the secondary market in the Growth Enterprise Market in China.Previous academic literature is mostly to explore the effect of reduction from the macro perspective,There are also a few literatures that divide executives and big shareholders into different categories to explore the difference of information superiority between them.Yet,on the whole,it is still lack systematic investigation in the difference of information superiority.This phenomenon makes it impossible for regulators to formulate appropriate regulatory policies for specific shareholders.The main part of this article is part three and four.In part three,we study the information superiority and the interest relationship between family members with the method of event study and linear regression.Meanwhile,we document that: the information hierarchy of family members is different,spouses and executives are persons acting in concert.Thus the information quality of spouses obtained from executives is more efficient.Compared to spouses,the information for parents and siblings is of low-quality.Parents have strong interest relationship with executives,but they cannot take full advantage of the information because of age.The reduction of siblings can be seen as a speculative behavior for excess return,but they can utilize the information more effectively compared to parents.All in all,we argue that these findings highlight the significance of information spreading in family regarding financial decisions.The part four is the research on the reduction of major shareholders in GEM.we study the information superiority and the interest relationship between different shareholders with the method of event study and linear regression.Meanwhile,we document that: the absolute holding executives and institution shareholders can obtain strong CAR through the reduction.Absolute holding executives have the strongest information superiority,and the ability to manipulate the stock price is also the strongest.As for individual shareholders,with a strong timing ability.the external factors considered in the reduction are the most comprehensive.However,the information for individual shareholders is of low-qualityIn a word,The innovation of this paper is to study the effects of executives and large shareholders in detail from the information advantage and manipulation perspective.The research results also form a supplement to the previous research.