Research On The Impact Of Reduction Of Large Shareholders On Growth Of GEM Listed Companies

Since the first batch of stocks of GEM listed companies were lifted on November 1,2010,they have suffered from successive reduction.The "three high" issuance is the reason for the reduction.However,the imperfection of the management structure,performance instability and the inappropriate growth of some companies are also important reasons for the reduction of large shareholders.The substantial reduction of major shareholders has attracted the attention of all aspects of society,and has also become a research hotspot of many scholars.In the existing studies,more studies are mainly focused on the motivation of the reduction of large shareholders and the changes of market performance after the reduction.Few people pay attention to the impact of the reduction of large shareholders on the growth of the company.The growth of the listed companies on GEM shows the company's operating level and development ability,which is the focus of investors' attention.Large shareholders' reduction affects the liquidity level and ownership structure of the company's stock,as well as the growth of the company.To explore the relationship between the reduction of large shareholders and the growth of companies listed on GEM,and to reveal the impact of the reduction on the growth of enterprises,not only can it fill the gap in the relevant theory,but also can make investors and regulatory departments have a clearer understanding of the reduction of large shareholders and the relationship between the two.In the process of studying the influence of major shareholders on the growth of companies listed on GEM,this paper conducts theoretical and empirical tests on the basis of a series of studies on the status quo of relevant literature at home and abroad.This paper chooses the data of companies listed on GEM from 2012 to 2017,and takes the companies whose major shareholders' reduction occurred in 2012-2014 as sample companies,and establishes the company through principal component analysis.The long-term comprehensive evaluation model studies the impact of major shareholder reduction on corporate growth in the next three years,and supports the relevant conclusions with empirical results.Firstly,this paper defines the major shareholders as the top ten shareholders whose shareholding ratio is more than 5%.On this basis,it studies the impact of the reduction ratio of major shareholders on the growth of the company.At the same time,it studies the impact of the reduction ratio of majorshareholders on the growth of the company under different shareholding ratios and different reduction prices.The results show that there is a significant negative correlation between the reduction ratio of major shareholders and the growth of the company;the higher the proportion of major shareholders,the more significant the negative relationship between the reduction ratio and the growth of the company;the higher the reduction price,the more significant the negative relationship between the reduction ratio of major shareholders and the growth of the company.As an important person of the company,the major shareholders of the listed companies on GEM have important internal information of the company,so it is necessary to study the behavior of the major shareholders' reduction.The research on the impact of major shareholder reduction on the growth of the company has not only important theoretical significance but also important practical significance.It can make management,investors and regulators more comprehensively understand the phenomenon of major shareholder reduction.It has certain significance to protect the sustainable growth of GEM listed companies from the perspective of major shareholder reduction.