Research On The Reasons,the Timing And The Harm Of The Large Shareholder Reduces Holding

Since the reform of non-tradable shares in 2005,major shareholders frequently reduce their holdings in China's secondary market,which has disturbed the market order.Major shareholders can make use of the advantage of "insiders" to obtain the internal information of the company in advance and understand the basic situation of the company.Then,what is the reason for major shareholders to reduce their holdings?When did major shareholders reduce their holdings? And based on this motivation and timing,what harm does the reduction of large shareholders bring? The paper takes this as a starting point and takes S company as an example to analyze the motivation,timing and harm of the reduction of its major shareholders.This paper mainly adopts literature research method,case analysis method and comparative analysis method,and combines relevant theories to analyze the reduction behavior of major shareholders.According to the operation situation and industry environment of S company,the internal and external situation of its major shareholders' reduction is collected and sorted out,and the motivation of the reduction of major shareholders is analyzed from the perspective of the company's operating performance prospects.At the same time,according to the process of information disclosure and reduction,the timing of reduction of large shareholders is analyzed.Then the specific harm caused by the reduction of holdings based on the above motivation and timing is elaborated.It is found that the continuous large-scale reduction of major shareholders will not only do harm to the company's operation and image,but also cause violent fluctuations in stock prices,cause strong negative market reaction,and damage the interests of small and medium investors.According to the analysis of the full text,it is concluded that the company's performance prospects have a greater impact on the large shareholders' reduction behavior,and that the large shareholders' reduction behavior seriously damages the interests of small and medium investors.Finally,it puts forward relevant suggestions at the level of company,regulatory body and small and medium investors,and adds suggestions at the level of large shareholders.To provide reference for protecting the interests of small and medium-sized investors and the healthy development of the market.