Research On The Relationship Between The Reduction Of Executives And Major Shareholders' Shareholdings And Corporate Value In GEM Listed Companies

The GEM market occupies an important position in China's capital market.It provides convenient financing channels for many innovative and growing SMEs and is an important part of China's multi-level capital market.In recent years,among the companies listed on the GEM,the phenomenon of reduction of executives and major shareholders has occurred frequently,which has aroused the attention of the theoretical and practical circles.As a group that can affect the company's operations,there is a correlation between the reduction behavior of the executives and major shareholders and the company's value.The reduction tendency is affected by the value of the company and can affect the value of the company from different angles.Directly affecting the company's operating performance can also affect the company's financing ability by affecting the market's expectations of the company's operations,thereby affecting the company's development.GEM companies are mainly high-growth small and medium-sized companies.As executives of the company,executives and shareholding incentives are common.The shareholdings are converted into cash as executives and major shareholders.The means can be divided into two types: speculative reduction and liquidity reduction according to the different motives of reduction.The impact of these two types on company value is also different,so it is necessary to The impact of value is classified.This paper focuses on the executives of the Board of Directors,the Board of Supervisors and the Managers,and the major shareholders holding more than 5% of the total share capital as the research subject,and studies the reduction of the executives and major shareholders of the GEM listed companies in 2015-2017.Standards for identifying speculative reductions and liquidity reductions have been established.Using the event analysis method and the regression analysis method,the relationship between the reduction behavior of executives and major shareholders and the company value is studied from the aspects of market value and enterprise value.The results show that the two kinds of reduction behaviors based on speculative motives and mobile motives have a negative impact on company value.The speculative reduction has less impact on the company's value,while the liquidity reduction is more closely related to the company's operations,and has a greater impact on the company's value;the executives who reduce the liquidity and the shareholder's shareholding tend to be affected by the company's Prospects and future income impact,the company's growth can inhibit the trend of liquidity reduction,while the speculative type reacts more strongly to market volatility,reflecting thecharacteristics of short-term speculation;speculative and mobile reduction have different effects on corporate value In the short-term,the stock price of the company has fluctuated around the day,but the relative reduction of the liquidity has a greater impact on the market value of the company,because the occurrence of speculative reduction indicates that the current stock price of the company is At short-term highs,you can get excess returns by reducing your holdings.In the long run,liquidity reduction has a greater impact on corporate value,because the majority of shareholders who carry out liquidity reduction are controlling shareholders,and their reductions will affect the expectations of external investors on the company's operations,and pass more negative.information.