On Insiders' Share Reduction And Information Manipulation Behavior Of Hareonsolar

Chinese securities market relies heavily on information.The continuous disclosure of information by listed companies has become the main channel for investors to understand the company's situation.Information will have a direct impact on investors' decision-making.However,some listed companies' major shareholders and senior executives use information advantages to take false records,misleading statements,and major missing information to cover up real information,mislead investors' decisions,and realize private interests,which not only damages investors' interests but also disrupts the financial market order.There are endless examples of information manipulation in the capital market.For example,Huiqiu Technology Co.,Ltd.misleads investors through the network to disseminate false information,and Hongda New Materials Co.,Ltd.has gradually exposed the events such as the “fresh stock price” of mergers and acquisitions,which has brought great negative impact to the market.The research object of this paper is the insider of the listed company.Based on the definition of insiders by scholars in the past,the insider is defined as the directors,senior executives and shareholders with disclosure obligations who have the right to participate in the company's information disclosure decision.This paper hopes to understand the impact of information manipulation behavior on the market and investors by understanding the specific information manipulation behavior adopted by insiders of Hareonsolar,and provide reference for the supervision department to judge the rationality of the reduction of insiders in listed companies.This paper takes the listed company Hareonsolar as the case study object,analyzes the motives of the insiders' share reduction of Hareonsolar,and reviews the specific manipulation mode of the insiders' selective disclosure information,trying to dig out the internal mechanism between insiders' information manipulation behavior and share reduction.After a series of analysis and research,this paper draws the followingconclusions: First,the motivation for insiders share reduction of Hareonsolar is related to factors such as the decline of the company's profitability and the consensus of shareholders.Second,the insiders of Hareonsolar use information superiority to selectively disclose information,even violate the relevant provisions of information disclosure;timely releasing high delivery is related to poor operating conditions and weak government superviton;misleading information statements is resulted in unbalanced internal governance structure and small shareholders' low decision-making;incomplete information disclosure is related with defective reduction system and insufficient punishment for information disclosure violations.Third,there are some targeted recommendations provided,including improving the insiders' share reduction and information disclosure system,increasing the penalties for violations of information disclosure and strengthening the corporate governance structure.Different from previous studies,this paper has realized the comprehensive consideration between insiders' share reduction and information manipulation behaviors.This paper specifically analyses the various information manipulation methods adopted by Hareonsolar and explores the fact that the insiders manipulate the information and cooperate with the reduction.This paper will help improve the information disclosure system and the reduction system,and strengthen the supervision of external regulatory authorities.