Research On The Short-selling Behavior Of Controlling Shareholders

In China's current capital market,single shareholding structure is still the mainstream.The major shareholder of the company has absolute control over the enterprise compared to other shareholders,and the internal control of the company is still When it is not perfect enough,the controlling shareholder will use its absolute control and the loopholes of the company's internal control system to transfer the company's interests and take it for themselves.This makes the contradiction between controlling shareholders and small and medium shareholders increasingly fierce.In addition,China's capital market has not yet matured.Although relevant laws,regulations and regulatory measures are constantly improving,it has played an important role in the orderly operation of the capital market,but it still cannot completely eliminate the problems exposed in the capital market.In addition,China's current punishment mechanism is not strict enough,many controlling shareholders are still willing to take risks in order to make huge profits.With the increasing conflict between the controlling shareholder and the small and medium-sized shareholders,the market's response to this is becoming more and more sensitive.Protecting the interests of small and medium-sized shareholders has become the focus of the work of the regulatory authorities,which has prompted the controlling shareholders to sell more and more.Concealed,more and more ways,such as short-selling through capital occupation,external guarantees,financial fraud.How to identify and prevent the short-selling behavior of controlling shareholders,protect the interests of small and medium-sized shareholders,and maintain the healthy development of the capital market has become an inevitable requirement for the current market to remain stable.This paper selects Jiangsu Baoqian Video Technology Group Co.,Ltd.as a case,based on principal-agent theory,control theory and information asymmetry theory,analyzes the short-selling behavior of its controlling shareholder Zhuang Min,from three aspects: reasons,means and influence.Cut in,and finally draw conclusions and revelations from it.Through analysis,it is found that the reasons for the short-selling behavior are mainly due to insufficient external supervision,low cost of violations,defects in internal control of the company and the ineffective role of small and medium-sized shareholders.The main means of short-selling behavior are the increase in shareholdings,foreign investment,non-compliance guarantees and financial fraud.After the exposure of the short-selling behavior,Baojili's share price fell sharply,and a large number of investors were trapped;the company's financial situation also deteriorated.Finally,based on the specific case and the current short-selling behavior in the market,the conclusions and enlightenments are drawn,hoping to play a certain role in restraining the spread of short-selling behavior.