Research On The Impact Of Reduction Of Major Shareholders On The Business Performance Of GEM Enterprises

The share-trading division divides the company's shares into non-tradable shares and tradable shares.It is an institutional problem formed during the economic transformation of China.In 2005,China's share-trading system entered a comprehensive reform stage.In the process of reforming the shareholding structure,the original restricted shares were lifted,and the curtain of frequent reduction of shareholders of listed companies was opened.As an important part of China's capital market,the GEM market is also accelerating its development.With the rapid increase in the number of GEM companies and the gradual lifting of the restricted shares,the frequency of reduction of major shareholders is increasing.The scale is also growing.Under the background of frequent reduction of shareholdings,what effect will the major shareholder's reduction behavior have on business performance? This is a hot topic of academic concern.However,at present,scholars' research on the relationship between major shareholder reduction and business performance is dominated by main board market enterprises,while there are few studies on GEM enterprises.Therefore,based on the existing research,this paper explores the GEM from the perspective of business performance.The impact of the reduction of the majority shareholder of the company,in order to enrich the research in related fields,and business management of the GEM.This paper mainly includes five parts: The first part introduces the background of the topic and the theoretical and practical significance of the research,summarizes the related research summary,and then expounds the research method and main content of this article from the overall perspective of the article,and finally points out the article's Contribution and innovation;the second part first expounds the basic concepts and motives of the GEM market and the major shareholder reduction,and then combs the relevant theory of the relationship between the major shareholder reduction and the company's operating performance,laying the foundation for the later analysis;Partially after introducing the evaluation method of business performance,based on the data of GEM companies,using empirical analysis to test whether the reduction of major shareholders will have an impact on business performance,making the conclusions of this paper more rigorous and reliable;the fourth part is before Based on the analysis of the three parts,the company listed on the GEM listed company Shensi Electronics,from the basic financial indicators,economic value added(EVA)and financial stability Z value,before and after the reduction of the majority shareholder of Shensi Electronics Analysis of business performance;the final part is the summary and recommendations,this part is for this paper The summary of the study and the corresponding recommendations from the regulatory level,the GEM company itself and small and medium investors.This paper focuses on case analysis,and empirical test is used to study the impact of the reduction of majority shareholder of GEM on business performance,which makes the research conclusions of this paper rigorous.The following conclusions were draw from the analysis: First,the results of empirical tests show that the reduction of the majority shareholder of the GEM has a significant negative impact on the company's business performance.Second,this paper takes Shensi Electronics as an example to analyze the reduction of major shareholders.Before and after the company's basic financial indicators,EVA values and changes in the financial stability Z value,it was found that the company's operating performance deteriorated significantly after the major shareholders reduced their holdings,indicating that the reduction of the majority shareholder reduced the business performance of Shensi Electronics;third,for the funds Demand is the main reason for the reduction of the majority shareholder of Shensi Electronics,and the high transfer behavior of Shensi Electronics and the uncertainty of the securities market further promote the occurrence of shareholder reduction.