Research On The Methods Of Reduction Of Major Shareholders Of Listed Companies

After the reform of non-tradable shares,the shares held by the controlling shareholder can be freely circulated in the secondary market after a certain period of lock-up period.The shareholding split represents the arrival of the full circulation of stocks,which means that the major shareholders of listed companies can use their own advantages to influence the stock price,and then profit through stock reduction.That is to say,stock prices have become the most direct factor affecting the wealth of large shareholders,and therefore affect the behavior of major shareholders.If the major shareholder deliberately uses the ups and downs of the stock price to accumulate wealth for himself,especially in the secondary market to reduce cash,then on the basis of the existing laws,it is likely that large shareholders will plunder the wealth of small and medium shareholders.In this context,the shareholding reduction of the major shareholders of listed companies frequently occurs,because it is related to the immediate interests,and many problems have arisen in the process of reducing its holdings.This paper takes Tianguang Fire-fighting Incorporated Company as the research object,and adopts a combination of theory and case to study and analyze the interests of large and medium shareholders by using information superiority to reduce the holdings and harm the interests of small and medium investors.The case is mainly divided into several parts.The first chapter introduces the background significance of this paper and the methods of research content.The second chapter explains the relevant theories,and sorts out the major shareholder reductions,as well as the means of reducing the holdings of the case companies and the literature on investor protection.The third chapter mainly introduces the current situation of China's major shareholder reduction,the relationship between M&A and earnings management and major shareholder reduction.The fourth chapter explains the reasons for choosing the case company of this article,and explains the case company event.On the basis of this,combined with a large number of data and event research methods,the operation method selected by the case company and the reduction of major shareholders in the short-term and Damage to the interests of small and medium investors in the long run.The fifth chapter is based on the literature review and theoretical basis,and draws the corresponding conclusions in combination with the case,and puts forward some suggestions.Therefore,through the analysis of the case of the major shareholder reduction of the case company,this paper can alleviate the blind pursuit and preference of the small and medium investors for the good information to a certain extent.The company's behavior should be combined with the current business situation for analysis.Major shareholders take this opportunity to reduce their holdings and obtain high returns.On the other hand,there are not many cases in which the existing literature on the reduction of major shareholders has linked mergers and acquisitions with major shareholder reductions,and this article supplements the case.