Analysis Of The Motivation And Effect Of Jinke Culture's Major Shareholders' Reduction Of Holdings

With the improvement of the reform system of non tradable shares,the profit-making mode of the major shareholders of Listed Companies in China has changed,and their profit-making mode gradually tends to pay equal attention to the securities market and the company.Due to the fact that the securities market in China is still in the development stage,the relevant laws and regulations are not perfect enough,and the information asymmetry in the market is common,which makes the major shareholders of listed companies choose to sell their shares to obtain more profits instead of actively finding and solving problems based on the development of the company or other business problems.This kind of behavior of large shareholders will not only bring negative impact on the operation and development of the company,but also make small and medium-sized investors lose confidence in the listed company,and will have an impact on the orderly development of the market.In order to improve corporate governance,small and medium-sized investors and relevant laws and regulations,some useful suggestions can be put forward by analyzing the behavior of reducing holding of major shareholders in listed companies.For this reason,the behavior of major shareholders of Jinke culture to reduce their shares in 2018 is selected for analysis and research.First of all,the relevant literature at home and abroad is summarized,and the relevant theories are sorted out to lay the research foundation.Secondly,according to the existing research,combined with the actual situation of the case,the real reasons for the reduction of large shareholders are analyzed in depth as follows:(1)due to the influence of the market situation,the overvalued share price of Jinke culture promotes the reduction of large shareholders;(2)Jinke culture is in the period of strategic transformation,and the reduction of large shareholders is to provide funds for the construction of Jinke culture;(3)the poor operation of the company through reduction In order to optimize the equity structure of Jinke culture,improve the effective supervision of the board of directors;(5)reduce the holding to avoid market risk.Then we use the event study method to study the market reaction and industry contagion effect of the reduction of large shareholders to individual shares.At the same time,based on the comparison of financial data before and after the reduction of financial statements,we get the impact of the reduction of large shareholders on the company's operatingperformance and the rights and interests of small and medium-sized investors.Although the behavior of reducing the holding of large shareholders of Jinke culture is a supportive behavior to the company,the research shows that the behavior of reducing the holding does not bring a positive effect to the company.Finally,based on the conclusion of this paper,some suggestions are put forward for the internal governance of Jinke culture,the improvement of the protection mechanism for the rights and interests of small and medium-sized investors,and the increase of the regulation on the reduction of large shareholders.